Permian Resources Corporation (PR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	297,560	242,458	144,173	765,185	127,313
Payables	US$ in thousands	94,533	51,443	9,736	5,052	21,484
Payables turnover		3.15	4.71	14.81	151.46	5.93

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $297,560K ÷ $94,533K
= 3.15

Permian Resources Corp has consistently reported a payables turnover ratio of 0.00 over the past five years, indicating that the company is not effectively managing its accounts payable. A payables turnover ratio of 0.00 suggests that the company is taking an extremely long time to pay its suppliers or may not be paying them at all. This could potentially strain relationships with suppliers and impact the company's reputation in the industry. It is crucial for Permian Resources Corp to address this issue and improve its payables turnover ratio to demonstrate sound financial management and enhance its overall financial health.