Devon Energy Corporation (DVN)

Working capital 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
Total current assets	US$ in thousands	3,157,000	3,212,000	2,605,000	3,189,000	3,891,000	4,009,000	6,351,000	4,973,000	4,249,000	4,227,000	3,076,000	3,467,000	3,260,000	3,477,000	3,378,000	4,055,000	3,851,000	2,846,000	5,167,000	2,703,000
Total current liabilities	US$ in thousands	2,949,000	3,330,000	2,669,000	2,931,000	3,105,000	3,460,000	4,094,000	3,754,000	3,087,000	3,505,000	3,072,000	2,945,000	1,440,000	1,709,000	1,452,000	1,554,000	1,927,000	1,658,000	3,467,000	1,968,000
Working capital turnover		73.36	—	—	74.34	24.39	34.87	7.61	11.46	10.50	12.76	1,703.50	9.18	2.65	2.91	3.02	2.89	3.23	6.87	4.93	11.31

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,258,000K ÷ ($3,157,000K – $2,949,000K)
= 73.36

Working capital turnover is a measure that indicates how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover ratio typically signifies better efficiency in managing working capital.

Based on the data provided for Devon Energy Corp., there is a notable fluctuation in the working capital turnover ratio over the quarters analyzed. In Q4 2023, the working capital turnover ratio was 73.36, which displayed a significant improvement compared to the previous quarter's unavailable data. This suggests a potential enhancement in the company's ability to generate sales revenue relative to its working capital in that period.

In contrast, the working capital turnover ratios for Q2 2022 and Q1 2022 were considerably lower at 7.74 and 11.69, respectively. These lower ratios indicate that Devon Energy Corp. may have been less efficient in utilizing its working capital to drive sales revenue during those periods.

Overall, the trend in the working capital turnover ratio for Devon Energy Corp. shows variability, which could reflect fluctuations in the company's operating efficiency and ability to effectively manage its working capital. Further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's performance in this area.