Diamondback Energy Inc (FANG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 166,000 | 158,000 | 155,000 | 6,116,000 | 901,000 |
| Payables | US$ in thousands | 261,000 | 127,000 | 36,000 | 71,000 | 179,000 |
| Payables turnover | 0.64 | 1.24 | 4.31 | 86.14 | 5.03 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $166,000K ÷ $261,000K
= 0.64
The payables turnover ratio for Diamondback Energy Inc has been consistently reported as 0.00 for the past five years, from 2019 to 2023. This indicates that the company is not effectively managing its accounts payable in relation to its cost of goods sold. A payables turnover ratio of 0.00 suggests that the company is taking an extremely long time to pay its suppliers or may not be utilizing its credit terms efficiently. This could potentially lead to strained supplier relationships or missed opportunities for improving cash flow through better management of payables. Further investigation into Diamondback Energy Inc's payables management practices and supplier relationships may be warranted to address this issue and enhance operational efficiency.
Peer comparison
Dec 31, 2023