Devon Energy Corporation (DVN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,940,000 | 15,258,000 | 19,169,000 | 12,206,000 | 4,828,000 |
| Total current assets | US$ in thousands | 3,427,000 | 3,157,000 | 3,891,000 | 4,249,000 | 3,260,000 |
| Total current liabilities | US$ in thousands | 3,309,000 | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 |
| Working capital turnover | 135.08 | 73.36 | 24.39 | 10.50 | 2.65 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,940,000K ÷ ($3,427,000K – $3,309,000K)
= 135.08
The working capital turnover for Devon Energy Corporation has experienced a significant increase over the past five years, reflecting the company's efficiency in utilizing its working capital to generate revenue. The ratio has shown a strong upward trend, starting at 2.65 in December 31, 2020, and reaching 135.08 by December 31, 2024. This indicates that, on average, the company's working capital was turned over 135.08 times during the year, which is a considerable improvement over the initial ratio of 2.65.
Such a substantial increase in working capital turnover suggests that Devon Energy Corporation has been able to manage its working capital more effectively and optimize its operations efficiently. This can be attributed to better inventory management, tighter control over receivables, and improved payment cycles. Overall, the rising trend in working capital turnover reflects positively on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024