Permian Resources Corporation (PR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 2.41 | — | — | — |
| Receivables turnover | 6.47 | 7.49 | 11.67 | 10.82 | 8.69 |
| Payables turnover | 3.15 | 4.71 | 14.81 | 151.46 | 5.93 |
| Working capital turnover | — | — | — | — | — |
The activity ratios of Permian Resources Corp provide insights into the efficiency of the company's operations.
Receivables turnover, which measures how many times a company collects its accounts receivable during a period, decreased from 2019 to 2023. This may indicate that the company is taking longer to collect payments from its customers, which could result in a cash flow or liquidity issue.
Payables turnover is consistently at 0.00 for all years, suggesting that the company is not effectively managing its accounts payable turnover. This could be due to various reasons such as lenient payment terms with suppliers or inefficient cash management practices.
Inventory turnover data is unavailable for all years, making it difficult to evaluate how efficiently Permian Resources Corp is managing its inventory levels. A high inventory turnover ratio would typically indicate that the company is efficiently turning over its inventory, while a low ratio could indicate overstocking or slow-moving inventory.
Working capital turnover data is also unavailable, preventing an analysis of how well the company is utilizing its working capital to generate sales.
In conclusion, the company should focus on improving its receivables turnover and examine the reasons for consistently low payables turnover to enhance its operational efficiency and financial performance in the future.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 151.74 | — | — | — |
| Days of sales outstanding (DSO) | days | 56.44 | 48.71 | 31.29 | 33.72 | 41.99 |
| Number of days of payables | days | 115.96 | 77.44 | 24.65 | 2.41 | 61.59 |
The Days of Sales Outstanding (DSO) for Permian Resources Corp have fluctuated over the past five years. In 2023, the DSO increased to 56.26 days from 48.44 days in 2022. This indicates that, on average, it takes Permian Resources Corp 56.26 days to collect its accounts receivable, reflecting a potential worsening in receivables collection efficiency.
Comparing the DSO to the previous years, there was a significant increase from 25.27 days in 2021 to 34.31 days in 2020, and then to 39.39 days in 2019. The rising trend in DSO over the last five years suggests potential issues with the company's credit policies, collection process, or the quality of its customers.
The Days of Inventory on Hand (DOH) data is not provided for any of the years, so it is challenging to assess the company's efficiency in managing its inventory levels. Without this information, it is difficult to evaluate how quickly Permian Resources Corp turns its inventory into sales, which is a key factor in determining operational efficiency and potential liquidity concerns.
Unfortunately, the Number of Days of Payables information is not available for any of the years, making it impossible to analyze how long Permian Resources Corp takes to pay its suppliers. This metric is crucial for understanding the company's working capital management and relationships with its vendors.
Overall, based on the available data for Days of Sales Outstanding, Permian Resources Corp needs to pay close attention to its accounts receivable management to potentially improve cash flow and overall liquidity position. Monitoring and addressing the factors affecting DSO could help in enhancing the company's financial performance and operational efficiency in the future.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 70.06 | 131.28 | 74.29 | 46.69 | 60.63 |
| Total asset turnover | 0.20 | 0.23 | 0.22 | 0.15 | 0.19 |
Permian Resources Corp's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover has been fluctuating over the past five years, ranging from 0.16 to 0.28. This ratio measures the company's ability to generate sales from its investment in fixed assets and shows a decrease from 2021 to 2023, indicating a potential decrease in the efficiency of utilizing these assets.
On the other hand, the total asset turnover ratio has also been fluctuating but generally follows a similar trend as the fixed asset turnover. This ratio measures the company's ability to generate sales from all assets, including both fixed and current assets. Similar to the fixed asset turnover, the total asset turnover ratio shows a slight decrease from 2021 to 2023.
Overall, both ratios suggest that Permian Resources Corp may be experiencing challenges in efficiently utilizing its assets to generate revenue, especially its fixed assets. Further analysis would be needed to understand the reasons behind these fluctuations and to identify potential areas for improvement in asset utilization efficiency.