Devon Energy Corporation (DVN)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	15,940,000	15,682,000	15,494,000	15,031,000	15,258,000	15,412,000	17,008,000	19,180,000	19,169,000	19,143,000	17,177,000	13,968,000	12,206,000	9,213,000	6,814,000	4,791,000	4,828,000	5,137,000	5,816,000	7,228,000
Receivables	US$ in thousands	2,355,000	2,134,000	1,874,000	1,940,000	1,846,000	2,115,000	1,768,000	1,889,000	1,962,000	2,280,000	2,582,000	2,219,000	1,739,000	1,689,000	1,343,000	1,270,000	683,000	574,000	698,000	815,000
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,940,000K ÷ $2,355,000K
= 6.77

The receivables turnover ratio measures how efficiently a company is able to collect on its outstanding receivables during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.

Analyzing Devon Energy Corporation's receivables turnover based on the provided data, we observe that the ratio fluctuated over the reported periods. The ratios ranged from a low of 3.77 on March 31, 2021, to a high of 10.15 on March 31, 2023. Generally, a declining trend in receivables turnover could suggest potential issues with collecting on outstanding receivables, while an increasing trend indicates improved efficiency in collecting payments.

Devon Energy Corporation experienced a significant increase in receivables turnover from March 31, 2022, to December 31, 2022, reaching a peak of 9.77 before slightly declining in subsequent periods. This increase might indicate enhanced collection efforts or better credit management practices during that time frame.

However, it is worth noting that the receivables turnover ratio decreased in the last reported period, December 31, 2024, compared to the earlier periods in 2024. This decline could imply a slower collection of receivables during that quarter.

In conclusion, while Devon Energy Corporation's receivables turnover ratio has shown fluctuations, an overall analysis suggests improvements in receivables management efficiency during certain periods, although some variability is observed that may warrant further investigation into the company's collection processes.