Devon Energy Corporation (DVN)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	6,220,000	8,161,000	8,389,000	8,310,000
Receivables	US$ in thousands	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	1,013,000	976,000	1,067,000	1,207,000
Receivables turnover		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	6.14	8.36	7.86	6.88

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,258,000K ÷ $1,846,000K
= 8.27

Receivables turnover measures how efficiently a company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is able to collect cash from its credit sales more quickly.

Analyzing the receivables turnover of Devon Energy Corp. over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the receivables turnover was 9.70, showing an improvement from the previous quarter. This suggests that the company was able to convert its accounts receivable into cash 9.70 times during the quarter.

Comparing the current ratio to the same quarter in the previous year (Q4 2022), we see a slight decrease from 10.85 to 9.70. Despite the decrease, the company's ability to collect payments from its customers remains relatively strong.

Overall, we can conclude that Devon Energy Corp. has maintained a relatively healthy receivables turnover ratio over the past eight quarters, indicating efficient management of its accounts receivable and effective collection processes.

It's important to note that receivables turnover should be interpreted in conjunction with other financial ratios and metrics to gain a comprehensive understanding of the company's overall financial performance and liquidity position.