Permian Resources Corporation (PR)

Short-term

Turnover ratios

Permian Resources Corporation's activity ratios provide insight into how efficiently the company is managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- In 2022, Permian Resources Corporation had an inventory turnover ratio of 7.09. This indicates that the company's inventory was sold and replaced approximately 7.09 times during the year. A higher inventory turnover ratio generally signifies more efficient inventory management.

2. Receivables Turnover:
- The receivables turnover ratio for all the years provided is not available. This ratio typically measures how many times a company collects its accounts receivable during a period. A higher receivables turnover ratio is preferable as it shows that the company is efficient in collecting payments from customers.

3. Payables Turnover:
- The payables turnover ratio for all the years provided is not available. This ratio assesses how efficiently a company pays its suppliers. A higher payables turnover ratio may indicate that the company is managing its payables effectively.

4. Working Capital Turnover:
- The working capital turnover ratio for all the years provided is not available. This ratio measures how effectively a company utilizes its working capital to generate sales. A higher working capital turnover ratio implies better utilization of resources.

In conclusion, while the specific data for receivables turnover, payables turnover, and working capital turnover is not available, the inventory turnover ratio of 7.09 in 2022 indicates that Permian Resources Corporation efficiently managed its inventory during that year. Monitoring these activity ratios over time can provide valuable insights into the company's operational efficiency and effectiveness in managing its resources.

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Average number of days

Based on the provided data for Permian Resources Corporation, the activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2022, Permian Resources Corporation had 51.49 days of inventory on hand. This indicates the average number of days the company holds inventory before it is sold. A lower DOH value is generally preferable as it suggests efficient inventory management.

2. Days of Sales Outstanding (DSO):
- The data shows that the Days of Sales Outstanding (DSO) values are not provided for any of the years. DSO measures the average number of days it takes for the company to collect revenue after a sale is made. Lower DSO values are desirable as they indicate faster collection of accounts receivable.

3. Number of Days of Payables:
- The provided data does not offer any specific values for the Number of Days of Payables for Permian Resources Corporation. This ratio measures the average number of days the company takes to pay its suppliers or trade payables. A longer payment period can indicate better cash flow management but may also raise concerns about supplier relationships.

In conclusion, based on the limited data provided, Permian Resources Corporation seems to have a moderate level of inventory on hand as of December 31, 2022. However, additional data on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive assessment of the company's overall activity and efficiency in managing its working capital.

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Long-term

Permian Resources Corporation's fixed asset turnover has shown an improvement trend from 0.16 in December 2020 to 0.28 in December 2021 and then slightly decreased to 0.27 in December 2022. However, there is missing data for December 2023 and December 2024. This ratio indicates that the company is generating $0.16 to $0.28 in sales revenue for every dollar invested in fixed assets, showcasing an increase in efficiency in utilizing its fixed assets for generating revenue over the analyzed years.

In contrast, the total asset turnover ratio for Permian Resources Corporation demonstrates a similar pattern of improvement from 0.15 in December 2020 to 0.27 in December 2021, followed by a slight decline to 0.25 in December 2022. The ratio further decreased to 0.21 in December 2023 before increasing again to 0.30 in December 2024. This ratio reflects the company's ability to generate sales revenue relative to its total assets. Overall, the increasing trend signifies that the company is becoming more efficient in utilizing its total assets to generate sales revenue.