Diamondback Energy Inc (FANG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,412,000 | 9,643,000 | 6,797,000 | 2,813,000 | 3,964,000 |
| Receivables | US$ in thousands | 847,000 | 1,006,000 | 671,000 | 437,000 | 615,000 |
| Receivables turnover | 9.93 | 9.59 | 10.13 | 6.44 | 6.45 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,412,000K ÷ $847,000K
= 9.93
Diamondback Energy Inc's receivables turnover has shown a fluctuating trend over the past five years, ranging from 6.44 to 10.13. The receivables turnover ratio measures the efficiency with which the company collects on its credit sales. A higher ratio indicates that the company is more effective in collecting its accounts receivable.
In the latest fiscal year ending on December 31, 2023, Diamondback Energy Inc's receivables turnover ratio stood at 9.93, which indicates that the company collected its accounts receivable nearly 10 times during the year. This represents an improvement compared to the previous year, where the ratio was 9.59.
The consistent increase in the receivables turnover ratio from 2020 to 2022 suggests that Diamondback Energy Inc has been effectively managing its accounts receivable and improving its collection processes. However, the slight dip in 2023 compared to the prior year warrants further investigation to ensure the company's continued efficiency in collecting outstanding receivables.
Overall, a higher receivables turnover ratio generally signifies better liquidity and cash flow management for Diamondback Energy Inc, demonstrating the company's ability to promptly convert its credit sales into cash.
Peer comparison
Dec 31, 2023