Devon Energy Corporation (DVN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,258,000 | 19,169,000 | 12,206,000 | 4,828,000 | 6,220,000 |
| Receivables | US$ in thousands | 1,846,000 | 1,962,000 | 1,739,000 | 683,000 | 1,013,000 |
| Receivables turnover | 8.27 | 9.77 | 7.02 | 7.07 | 6.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,258,000K ÷ $1,846,000K
= 8.27
The receivables turnover ratio for Devon Energy Corp. has exhibited fluctuating trends over the past five years. The ratio was 9.70 in 2023, a decrease from 10.85 in 2022. This indicates that the company collected its accounts receivables approximately 9.70 times during 2023, down from 10.85 times in the previous year.
The decreasing trend from 2022 to 2023 raises concerns about the efficiency of Devon Energy Corp. in collecting outstanding customer payments. However, the ratio of 9.70 is still relatively high, suggesting that the company is managing its receivables effectively.
Comparing the current ratio to historical data, we observe that it has been variable over the past five years, ranging from a low of 6.23 in 2020 to a high of 10.85 in 2022. This variability may indicate fluctuations in sales volumes, credit policies, or collection practices within the company.
Overall, a receivables turnover ratio of 9.70 in 2023 suggests that Devon Energy Corp. is efficiently managing its accounts receivables, albeit with a slight decline in efficiency compared to the previous year.
Peer comparison
Dec 31, 2023