Devon Energy Corporation (DVN)
Working capital 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 |
| Total current assets | US$ in thousands | 3,157,000 | 3,891,000 | 4,249,000 | 3,260,000 | 3,851,000 |
| Total current liabilities | US$ in thousands | 2,949,000 | 3,105,000 | 3,087,000 | 1,440,000 | 1,927,000 |
| Working capital turnover | 73.36 | 24.39 | 10.50 | 2.65 | 3.23 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,258,000K ÷ ($3,157,000K – $2,949,000K)
= 73.36
The working capital turnover ratio for Devon Energy Corp. has shown a significant increase over the past five years, indicating a generally improving efficiency in managing its working capital. The ratio has risen from 3.23 in 2019 to 73.36 in 2023.
This indicates that the company is generating significantly more revenue from its working capital in recent years, reflecting an enhanced ability to convert its current assets and liabilities into sales. A higher working capital turnover ratio suggests that the company is utilizing its working capital more efficiently to support its operations and generate sales.
Overall, the trend in Devon Energy Corp.'s working capital turnover ratio indicates a positive trajectory in terms of the company's operational efficiency and effectiveness in managing its working capital resources.
Peer comparison
Dec 31, 2023