Diamondback Energy Inc (FANG)

Receivables 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	8,412,000	8,214,000	8,311,000	9,160,000	9,643,000	9,635,000	9,108,000	8,021,000	6,797,000	5,544,000	4,354,000	3,098,000	2,813,000	3,148,000	3,403,000	3,999,000	3,964,000	3,493,000	3,055,000	2,561,000
Receivables	US$ in thousands	847,000	996,000	807,000	942,000	1,006,000	786,000	1,037,000	1,079,000	671,000	811,000	690,000	632,000	437,000	391,000	442,000	403,000	615,000	538,000	517,000	463,000
Receivables turnover		9.93	8.25	10.30	9.72	9.59	12.26	8.78	7.43	10.13	6.84	6.31	4.90	6.44	8.05	7.70	9.92	6.45	6.49	5.91	5.53

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,412,000K ÷ $847,000K
= 9.93

Diamondback Energy Inc's receivables turnover ratio has fluctuated over the past eight quarters, indicating changes in how efficiently the company is collecting its accounts receivable. The ratio measures how many times on average the company collects its accounts receivable during a specific period.

The Q4 2023 receivables turnover of 9.93 shows an improvement compared to the previous quarter, which suggests that Diamondback Energy Inc was able to collect its receivables more efficiently during that period. However, it is important to note that the Q4 2023 ratio is slightly below the ratios seen in Q2 and Q4 2022, which were 10.30 and 9.59, respectively.

Overall, Diamondback Energy Inc's receivables turnover ratios have shown some variability, with the highest ratio of 12.26 reported in Q3 2022. This may indicate fluctuations in the company's sales, credit policies, or collection efforts. It is essential for the company to monitor this ratio consistently to ensure effective management of its accounts receivable and maintain strong liquidity levels.