Devon Energy Corporation (DVN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	1.85	1.68	1.84	1.96	1.80	1.91	2.19	2.07	2.13	—	—	—	5.92	—	—	—	—	4.78	5.37	6.22
Receivables turnover	6.77	7.35	8.27	7.75	8.27	7.29	9.62	10.15	9.77	8.40	6.65	6.29	7.02	5.45	5.07	3.77	7.07	8.95	8.33	8.87
Payables turnover	0.24	0.20	0.22	0.21	0.23	0.20	0.22	0.20	0.18	0.17	0.16	0.21	0.35	0.34	0.47	0.47	4.13	4.49	6.48	5.49
Working capital turnover	135.08	48.10	45.17	113.87	73.36	—	—	74.34	24.39	34.87	7.61	11.46	10.50	12.76	1,703.50	9.18	2.65	2.91	3.02	2.89

The inventory turnover ratio for Devon Energy Corporation has been on a declining trend, indicating that the company is taking longer to sell its inventory. This could potentially lead to higher carrying costs and reduced liquidity.

On the other hand, the receivables turnover ratio shows an increasing trend, suggesting that Devon Energy is collecting its receivables more efficiently over time. This indicates effective management of the company's accounts receivable.

The payables turnover ratio for the company has decreased steadily, indicating that Devon Energy is taking longer to pay its suppliers. While this may improve cash flow in the short term, it could strain relationships with suppliers in the long run.

The working capital turnover ratio has experienced significant fluctuations, with some periods showing extremely high values. This may be due to changes in the company's working capital management practices. It is important for Devon Energy to maintain a balance in managing its working capital efficiently to support its operations and growth.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	196.90	216.93	198.67	186.48	202.87	190.68	166.36	176.26	171.41	—	—	—	61.64	—	—	—	—	76.40	67.96	58.65
Days of sales outstanding (DSO)	days	53.93	49.67	44.15	47.11	44.16	50.09	37.94	35.95	37.36	43.47	54.87	57.99	52.00	66.91	71.94	96.75	51.64	40.78	43.81	41.16
Number of days of payables	days	1,498.84	1,790.20	1,630.18	1,711.04	1,614.80	1,838.09	1,690.09	1,829.99	2,016.88	2,132.76	2,241.68	1,734.71	1,057.69	1,065.93	774.41	782.60	88.30	81.31	56.35	66.48

Devon Energy Corporation's Days of Inventory on Hand (DOH) increased steadily from March 31, 2020, to December 31, 2024, with fluctuations in between. The company held inventory for extended periods, indicating potential inefficiencies in managing stock levels and turnover.

In contrast, the Days of Sales Outstanding (DSO) fluctuated over the same period, initially decreasing before experiencing some volatility. DSO represents the average number of days it takes for the company to collect revenue after a sale. The fluctuations may suggest changes in the company's credit policies or the efficiency of its accounts receivable management.

The Number of Days of Payables shows significant fluctuations, with a dramatic increase from March 31, 2020, to June 30, 2022, followed by a decreasing trend through December 31, 2024. This suggests that Devon Energy Corporation took an exceptionally long time to pay its suppliers during the early periods, potentially straining relationships, and later improved its payables management.

Overall, analyzing these activity ratios provides insights into Devon Energy Corporation's operational efficiency and effectiveness in managing inventory, accounts receivable, and accounts payable. The company may need to focus on optimizing its inventory levels, enhancing collections on sales, and maintaining reasonable payment terms with suppliers to improve its overall operational performance.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	0.64	0.63	0.78	0.77	0.79	0.81	0.91	1.04	1.06	1.08	1.14	0.93	0.81	0.61	0.45	0.31	0.90	0.92	1.02	1.25
Total asset turnover	0.52	0.52	0.62	0.60	0.62	0.64	0.73	0.82	0.81	0.81	0.74	0.64	0.58	0.44	0.34	0.23	0.49	0.50	0.56	0.65

The Fixed Asset Turnover ratio for Devon Energy Corporation has shown fluctuating trends over the past few years, starting at a relatively high of 1.25 in March 2020, gradually decreasing to a low of 0.31 in March 2021, and then stabilizing around the range of 0.70 to 1.10 from June 2022 to December 2024. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio has also displayed variability, starting at 0.65 in March 2020, dipping to 0.23 in March 2021, and then recovering to levels between 0.60 and 0.80 from March 2022 to December 2024. This ratio evaluates the company's overall efficiency in utilizing all of its assets to generate sales.

In general, the upward trend in both ratios from 2021 to 2024 indicates an improvement in Devon Energy Corporation's ability to generate revenue relative to its asset base, which is a positive sign of operational efficiency and utilization of assets. However, the decrease in these ratios in the earlier years might suggest a period of lower productivity or challenges in asset management that the company has since worked to address.