Devon Energy Corporation (DVN)

Working capital 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
Total current assets	US$ in thousands	3,427,000	3,232,000	3,359,000	3,398,000	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
Total current liabilities	US$ in thousands	3,309,000	2,906,000	3,016,000	3,266,000	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
Working capital turnover		135.08	48.10	45.17	113.87	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,940,000K ÷ ($3,427,000K – $3,309,000K)
= 135.08

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Devon Energy Corporation, the working capital turnover has shown significant fluctuations over the reported periods.

In March 2020, the working capital turnover was 2.89, indicating that the company generated $2.89 in revenue for every dollar of working capital invested. The ratio increased to 3.02 in June 2020 before dropping to 2.65 by December 2020.

An aberration was seen in March 2021 when the working capital turnover surged to 9.18, suggesting an exceptional efficiency in utilizing working capital to generate revenue. This anomaly continued into June 2021 with a staggering ratio of 1,703.50, which is likely a data error or anomaly.

Subsequently, the ratio normalized in the following quarters, with figures ranging from 7.61 to 74.34. The abrupt fluctuations suggest potential irregularities or inconsistencies in the data reported.

Overall, the working capital turnover for Devon Energy Corporation has shown a volatile pattern, indicating fluctuations in the company's efficiency in converting working capital into sales revenue. Further analysis and investigation may be required to understand the reasons behind the extreme fluctuations observed in certain periods.