Permian Resources Corporation (PR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,057,910 | 1,991,940 | 831,791 | 590,570 | 885,921 |
| Receivables | US$ in thousands | 472,832 | 265,847 | 71,295 | 54,557 | 101,912 |
| Receivables turnover | 6.47 | 7.49 | 11.67 | 10.82 | 8.69 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,057,910K ÷ $472,832K
= 6.47
Permian Resources Corp's receivables turnover has exhibited fluctuations over the last five years. In 2023, the receivables turnover ratio decreased to 6.49 from 7.54 in 2022, indicating that the company collected its accounts receivable approximately 6.49 times during the year. This decrease may suggest a lengthening of the collection period, which could tie up cash flow.
Comparing to previous years, the receivables turnover was significantly lower in 2023 than in 2021 when it stood at 14.45, suggesting that in 2023, Permian Resources Corp took longer to collect its receivables compared to the previous year. However, the ratio was still higher than in 2020 and 2019, indicating that the efficiency of the company in collecting receivables improved in those years.
It is essential for Permian Resources Corp to assess the reasons behind the decrease in the receivables turnover in 2023 to ensure that the company's liquidity and cash flow position remain strong. A lower receivables turnover ratio may imply potential issues with credit policies, collection efforts, or the creditworthiness of customers, which the company should address to optimize its working capital management.
Peer comparison
Dec 31, 2023