Ovintiv Inc (OVV)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,883,000 | 10,929,000 | 11,829,000 | 13,048,000 | 12,464,000 | 12,591,000 | 10,831,000 | 8,787,000 | 8,658,000 | 6,847,000 | 6,248,000 | 5,282,000 | 6,087,000 | 6,124,000 | |||
| Receivables | US$ in thousands | 2,420,000 | 1,147,000 | 850,000 | 918,000 | 2,790,000 | 1,401,000 | 1,738,000 | 1,603,000 | 2,371,000 | 1,208,000 | 1,201,000 | 1,127,000 | 1,957,000 | 879,000 | 973,000 | 976,000 | 2,540,000 |
| Receivables turnover | 4.50 | 9.53 | 13.92 | 14.21 | 4.47 | 8.99 | 6.23 | 5.48 | 3.65 | 5.67 | 5.20 | 4.69 | 3.11 | 6.97 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $10,883,000K ÷ $2,420,000K
= 4.50
Ovintiv Inc's receivables turnover ratio has been fluctuating over the past eight quarters, showing significant variability. In Q4 2023, the company achieved a receivables turnover of 7.41, which indicates that the company collected its outstanding receivables around 7.41 times during the quarter. This was an improvement from the previous quarter's ratio of 7.11.
In Q2 2023, the company saw a sudden spike in its receivables turnover to 9.33, reflecting a rapid collection of receivables during that period. However, this was followed by an extremely high and unusual figure of 4,327.00 in Q1 2023, which is likely a data error or anomaly, as such a high turnover ratio is not practically achievable.
Looking back to Q4 2022, the receivables turnover was at a more realistic level of 288.28, and the trend continued to be positive in the subsequent quarters, with ratios exceeding 200 until Q2 2023.
It is important for Ovintiv Inc to track and monitor its receivables turnover consistently to ensure efficient management of its accounts receivable. The company should investigate any anomalies in the data and strive to maintain a healthy balance between collecting receivables promptly and maintaining good customer relationships.
Peer comparison
Dec 31, 2023