Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2012
- Operating Profit Margin since 2012
- Total Asset Turnover since 2012
- Price to Sales (P/S) since 2012
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Short-term Activity Ratios (Summary)
Diamondback Energy Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Inventory Turnover
- The inventory turnover ratio, starting from the first available data in the first quarter of 2017, showed relatively high values, peaking near 160 in mid-2018. It then declined steadily through late 2020, reaching a low in the mid-50s in mid-2021, but subsequently increased again to surpass 160 by the third quarter of 2022. This pattern indicates fluctuations in how efficiently inventory was managed, with periods of both faster and slower turnover.
- Receivables Turnover
- Receivables turnover improved from approximately 7.5 in early 2017 to a peak over 17 in mid-2020. After this peak, it declined sharply, reaching a minimum near 5.7 in mid-2021 before gradually recovering to 14.3 by late 2022. This suggests variability in the company's effectiveness at collecting receivables, with a notable deterioration during mid-2021 followed by improved collection efforts.
- Payables Turnover
- The payables turnover ratio experienced substantial fluctuations, initially around 12, rising to approximately 22 in late 2017 and early 2018. It then varied between 13 and 42 through 2020 and 2021, with an exceptional spike exceeding 260 in early 2022. Following this surge, the ratio steadily declined to about 69 by late 2022. The high ratio in early 2022 may reflect accelerated payment of obligations during that period.
- Working Capital Turnover
- Working capital turnover figures are sparse, with only one notable value of 25.65 reported early on, then an extreme outlier of 843.38 observed in the first quarter of 2022. This outlier suggests significant operational changes impacting the turnover of working capital, but insufficient data limits comprehensive trend analysis.
- Average Inventory Processing Period
- The inventory processing period remained relatively stable throughout the observed periods, typically between 2 to 6 days. Slight increases to 6 days occurred intermittently, but generally, the firm maintained a consistent pace of processing inventory over time.
- Average Receivable Collection Period
- Receivable collection periods declined steadily from around 49 days early in the data series to approximately 21 days by mid-2020, indicating more efficient collection during this time. However, this trend reversed as the collection period lengthened back to a peak of about 64 days in early 2021 before decreasing again to around 26 days by late 2022, reflecting variability in credit and collections management.
- Operating Cycle
- The operating cycle generally mirrored the trends in inventory and receivables management. It showed a decrease from the low fifties down to mid-twenties by mid-2020, indicating faster conversion of inventories and receivables to cash. Afterward, it lengthened to 70 days in early 2021 then declined once more to under 30 days toward the end of the period, showing fluctuations in operational efficiency.
- Average Payables Payment Period
- This metric trended downward from about 29 days to single-digit days by 2021, reaching as low as 1 day, before slightly increasing to about 5 days near the end of the dataset. The shortening payables period indicates quicker payments to suppliers, especially notable during 2021.
- Cash Conversion Cycle
- The cash conversion cycle demonstrated notable volatility, beginning around 23 days, rising to the mid-twenties or low thirties by 2018, then dropping sharply to near zero and even one day in the early 2020s. It rose significantly to over 60 days in early 2021 before declining to just over 20 days by late 2022. These fluctuations illustrate changing dynamics in the timing between cash outflows for payables and inflows from receivables and inventory.
Turnover Ratios
Average No. Days
Inventory Turnover
Diamondback Energy Inc., inventory turnover calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Revenue from contracts with customers | ||||||||||||||||||||||||||||||
| Inventories | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Inventory turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Inventory turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a generally upward trajectory over the observed periods from March 2017 through September 2022. Starting at $232 million in the first quarter of 2017, revenue grew steadily, peaking around $1,000 million by mid-2019. A significant decline appears in early 2020, corresponding with a decrease to $412 million in the second quarter of that year. Following this trough, revenue rebounded strongly, surpassing previous highs to reach a peak of approximately $2,752 million in the second quarter of 2022, before a slight decline to $2,417 million in the subsequent quarter.
- Inventory Levels
- Inventory values showed an increasing trend over the period but with notable fluctuations. Beginning at $3 million in the first quarter of 2017, inventories generally increased, reaching a high of $65 million in the third quarter of 2022. After a sharp rise from $15 million in the third quarter of 2018 to $38 million by the fourth quarter of 2018, inventories stabilized somewhat around the mid-30s to mid-60s million range from 2019 onwards. The increase in inventories corresponds with the company's expansion and higher revenue levels in the later quarters.
- Inventory Turnover Ratio
- The inventory turnover ratio demonstrated variability over time, suggesting changes in the efficiency of inventory management. Initially available data from early 2017 shows extremely high turnover figures exceeding 125, indicating rapid inventory movement. This ratio declined substantially through 2018, dropping to below 60 in the final quarter of that year and mid-50s in early 2021, signaling slower inventory turnover during these periods. Following this decline, the turnover ratio improved markedly post-2020, reaching levels over 160 by the third quarter of 2022, which indicates enhanced inventory liquidity and possibly improved operational efficiency.
- Overall Analysis
- The overall financial data reflects a pattern of growth interrupted by a significant downturn in early 2020, likely linked to external economic disruptions. Revenue growth post-2020 has been robust, outpacing pre-downturn levels significantly. Inventory levels have correspondingly increased but with a lag in turnover efficiency during certain periods. Later quarters demonstrated improved inventory management as reflected in rising turnover ratios, which alongside revenue increases, suggest enhanced operational effectiveness and potentially stronger market demand.
Receivables Turnover
Diamondback Energy Inc., receivables turnover calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Revenue from contracts with customers | ||||||||||||||||||||||||||||||
| Accounts receivable, oil and natural gas sales, net | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Receivables turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Receivables turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Accounts receivable, oil and natural gas sales, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The data reveals distinct patterns across revenue from contracts, accounts receivable, and receivables turnover ratios over the examined periods.
- Revenue from Contracts with Customers
- Revenue shows a general upward trajectory from March 31, 2017, through June 30, 2022, despite some fluctuations. The initial revenue in early 2017 was moderate at US$232 million, progressing to a peak of US$2,752 million by June 30, 2022. Notable growth periods occur between late 2017 and mid-2019, where revenue nearly triples. There is a notable dip at the onset of 2020, coinciding with global economic disturbances, with revenue falling to US$412 million in June 30, 2020, before recovering steadily thereafter. The upward trend culminates in the highest values recorded by mid-2022, though a slight decrease appears in September 2022.
- Accounts Receivable, Oil and Natural Gas Sales, Net
- Accounts receivable generally increase over the observed timeframe, reflecting higher sales volumes and potentially extending payment terms. Starting from US$83 million at March 31, 2017, the balances rise significantly to reach a peak of US$966 million by June 30, 2022. This upward movement aligns with rising revenues but shows periods of volatility. For example, accounts receivable decrease sharply in March 2020, alongside revenue, before rebounding. The elevated receivables at multiple points later in the timeline may indicate increased credit extended to customers or collections challenges.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits considerable variation across periods, suggesting changes in collection efficiency and credit management. Early in the series starting around mid-2017, turnover values range from approximately 7.48 to over 10, indicating moderately efficient receivables management. However, there is a sharp increase in turnover ratio during mid-2020, reaching values as high as 17.46, which could imply accelerated collection efforts or improved credit terms in response to adverse market conditions. Following this peak, the ratio declines again, fluctuating between 5.73 and 14.3, suggesting inconsistency in accounts receivable management or changing customer payment behaviors.
Overall, the data reflects substantial growth in revenue accompanied by increasing accounts receivable balances. The receivables turnover ratio's variability suggests periodic adjustments in credit collection policies or changes in market conditions affecting customer payments. The decline in revenue and accounts receivable during early 2020 aligns with global economic impacts, followed by a recovery phase in subsequent quarters.
Payables Turnover
Diamondback Energy Inc., payables turnover calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Revenue from contracts with customers | ||||||||||||||||||||||||||||||
| Accounts payable, trade | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Payables turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Payables turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Accounts payable, trade
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue from contracts with customers
- The revenue demonstrates a generally upward trend over the observed periods, increasing from 232 million USD in March 2017 to a peak of 2752 million USD in June 2022. Notably, there is a steady rise through 2017 and 2018, accelerating significantly from early 2021 onwards, with some fluctuations such as a temporary decline in March 2020 during the early stages of the COVID-19 pandemic. After this dip, revenue quickly recovers and reaches record highs in 2021 and the first half of 2022, though a slight decrease is noted in the last period observed (September 2022).
- Accounts payable, trade
- The accounts payable balance fluctuates over the period, starting at 20 million USD in March 2017 and showing an overall increase with intermittent volatility. There is a notable jump from 63 million USD in March 2018 to 128 million USD by December 2018. Following this, the balance peaks in March 2020 at 245 million USD before declining sharply to 71 million USD by December 2020. Subsequently, the payable balance remains relatively lower and more stable through 2021, before rising again from 21 million USD in March 2022 to 139 million USD in September 2022, suggesting varying payment cycle lengths or procurement changes over time.
- Payables turnover ratio
- The payables turnover ratio displays significant variation. Early data is missing, but from available figures starting September 2017, the ratio initially ranges around 12.54 to 22.55, indicating relatively frequent payment of accounts payable. A consistent increase is observed during 2020 and early 2021, peaking at 261.43 in March 2022, which signals accelerated payment of payables or potentially reduced supplier credit terms. After this peak, the ratio declines to 68.84 by September 2022. These fluctuations suggest changes in working capital management or supplier payment strategies, possibly reflecting responses to market conditions or liquidity management.
Working Capital Turnover
Diamondback Energy Inc., working capital turnover calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||
| Less: Current liabilities | ||||||||||||||||||||||||||||||
| Working capital | ||||||||||||||||||||||||||||||
| Revenue from contracts with customers | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Working capital turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Working capital turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital figures from March 2017 to September 2022 show significant fluctuations, generally reflecting negative values throughout most quarters. Initially, the working capital experienced a declining trend reaching as low as -419 million US dollars by March 2019. Periodic recoveries are evident, such as the positive 74 million in September 2018 and a brief positive figure of 8 million in December 2021; however, these are exceptions rather than the norm. Starting in 2020, a notably deeper decline is observed, with values dropping to as low as -671 million in September 2020 and remaining substantially negative into 2022, with the lowest point reaching -647 million in September 2022. This pattern indicates persistent working capital deficits, suggesting potential liquidity management challenges over the analyzed timeline.
- Revenue from Contracts with Customers
- Revenue demonstrates a clearly upward trajectory from March 2017 through June 2022, with some variability in the most recent quarters. Starting at 232 million US dollars in the first quarter of 2017, revenue increased steadily, peaking at 2.752 billion in June 2022. There are notable increments each year, with approximately fourfold revenue growth evident over the period. A temporary decline occurs in 2020, correlating with global economic disruptions; revenue fell to 412 million in June 2020 but recovered strongly by year-end and continued to rise significantly in 2021 and early 2022. Despite this recovery, a slight dip is seen from the peak in mid-2022 to 2.417 billion in September 2022, but overall, the revenue trend remains strongly positive.
- Working Capital Turnover
- Working capital turnover ratio data is sparse and only available for certain quarters. Notably, a high ratio of 25.65 is recorded at an unspecified date before 2018, and an exceptionally high ratio of 843.38 appears in one quarter within 2022. These elevated figures, combined with the negative working capital values, likely indicate that the firm operates with minimal or negative net current assets relative to sales, demonstrating highly efficient use of working capital to generate revenue, though potentially increasing risk related to liquidity. The irregular availability of this metric limits a comprehensive trend analysis, but the available data points suggest extreme turnover rates corresponding with periods of very low or negative working capital.
- Summary Insights
- The data reveals a consistent pattern of negative working capital across multiple quarters, implying that the company may finance operations largely through short-term liabilities rather than current assets. Simultaneously, revenue growth is robust and persistent, showing solid market performance and expansion, which might compensate for the working capital constraints. The unusually high working capital turnover ratios reflect this dynamic, suggesting intense utilization of available working capital to fuel sales. However, the firm's liquidity risk may warrant monitoring due to these ongoing working capital deficits despite healthy revenue progress.
Average Inventory Processing Period
Diamondback Energy Inc., average inventory processing period calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Inventory turnover | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average inventory processing period1 | ||||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio displays a notable upward trend starting from the first recorded value in March 2017. Initially, the ratio is quite high, exceeding 130 and peaking near 158 in mid-2017. Following this peak, it demonstrates a general decline through 2018 and into early 2019, reaching a low point around 56.69. Subsequently, the ratio recovers gradually through the remainder of 2019 and 2020, fluctuating between approximately 75 and 109. From 2021 onwards, the turnover ratio shows a consistent increasing trajectory, reaching its highest value of 162.19 by the third quarter of 2022, indicating an improvement in the efficiency with which inventory is sold and replaced over this period.
- Average Inventory Processing Period (Number of Days)
- The average inventory processing period inversely correlates with the inventory turnover ratio, as expected. Initially, in early 2017, the processing period is quite low, around 3 days, decreasing slightly to 2 days mid-2017. This period then extends during late 2018 and into 2019, reaching up to 6 days, consistent with the drop observed in the inventory turnover ratio during the same period. From 2019 through 2020, the processing period generally stabilizes between 3 and 4 days, indicating a moderate pace of inventory movement. In 2021 and onward through mid-2022, the processing period again shortens, falling back to around 2 or 3 days, aligning with the increasing inventory turnover ratio, which suggests improved operational efficiency in inventory management.
- General Insights
- The analysis reveals cyclical patterns in inventory management efficiency over the observed quarters. Periods of reduced inventory turnover coincide with longer processing durations, reflecting slower inventory movement possibly due to market conditions or operational challenges. Conversely, phases of increased turnover align with shorter processing periods, indicating more efficient inventory utilization. The recovery and sustained growth in turnover from 2020 to 2022 suggest enhanced management effectiveness or favorable market dynamics leading to faster inventory cycles and potentially better profitability.
Average Receivable Collection Period
Diamondback Energy Inc., average receivable collection period calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Receivables turnover | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average receivable collection period1 | ||||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio data begins from March 31, 2017, showing a general pattern of fluctuations over the observed periods. Initially, the ratio increased from 7.48 to a peak of 10.4 by December 31, 2017, indicating improved efficiency in collecting receivables. The ratio then experienced declines, reaching lower points around early 2021 with a value of 5.73 in March 31, 2021, signifying slower collections during that time. However, there was a notable rebound in the turnover ratio by late 2022, reaching 14.3 in September 30, 2022, the highest in the dataset. This suggests an overall enhancement in receivables management in the latter periods.
- Average Receivable Collection Period
- The average receivable collection period, expressed in days, displays an inversely correlated pattern compared to the receivables turnover ratio. The period started at 49 days in March 31, 2017, improving to as low as 35 days by December 31, 2017. A significant reduction was observed reaching a low point of 21 days in March 31, 2020, indicating faster collection of receivables. Conversely, collection periods lengthened substantially to 64 days by March 31, 2021, correlating with the lowest turnover ratio, reflecting slower collections during that interval. By September 30, 2022, the collection period shortened again to 26 days, suggesting improved efficiency and cash flow management.
- Summary of Trends and Insights
- The receivables turnover ratio and average collection period show a clear inverse relationship throughout the periods, as expected. Periods of higher turnover correspond to shorter collection days and vice versa. The overall trend indicates fluctuations likely influenced by market conditions or internal credit policies. The steep decline in turnover coupled with an increase in collection days around early 2021 might reflect external challenges or a relaxation in credit control. The strong recovery by late 2022 points to effective management strategies leading to improved receivables performance.
Operating Cycle
Diamondback Energy Inc., operating cycle calculation (quarterly data)
No. days
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Average inventory processing period | ||||||||||||||||||||||||||||||
| Average receivable collection period | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Operating cycle1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows variability over the examined quarters. Beginning from the earliest available data in the first quarter of 2018, the period was 3 days and fluctuated slightly between 2 and 6 days in subsequent quarters. Notably, the period peaked at 6 days in the first and second quarters of 2019. Following this peak, the period stabilized around 3 to 4 days, with a minor increase to 6 days in the second quarter of 2021. The most recent periods demonstrate a consistent return to 2 to 3 days, indicating a potential improvement in inventory processing efficiency towards the end of the data range.
- Average Receivable Collection Period
- The average receivable collection period displays a broader range and more pronounced fluctuations. Initially, in early 2018, the period decreased from 49 days to 35 days by the end of that year. However, in 2019, the period showed considerable volatility, rising back up to around 51-52 days in the first half of the year before decreasing again. A significant reduction occurred in the third and fourth quarters of 2019 and into 2020, dropping to as low as 21 days. Subsequently, the period increased sharply again in late 2020 and 2021, reaching a high of 64 days in the second quarter of 2021. The latest data points indicate a decline to around 26-39 days, suggesting improved collection efficiency in the most recent quarter.
- Operating Cycle
- The operating cycle, representing the total time to convert inventory and receivables into cash, mirrors trends seen in its components. The cycle declined from 52 days to 38 days between the first quarter of 2018 and year-end 2018, reflecting shorter processing and collection durations. A rise to 57-58 days occurred in early 2019 before an overall downward trend through 2019 and early 2020, reaching a low of 24 days. The operating cycle then increased notably in 2020 and 2021, peaking at 70 days in the second quarter of 2021, primarily due to the higher receivable collection period. The subsequent periods demonstrate a reduction to under 30 days, indicating a potential restoration of operational efficiency in cash conversion.
Average Payables Payment Period
Diamondback Energy Inc., average payables payment period calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Payables turnover | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average payables payment period1 | ||||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio displays notable variability over the analyzed periods. Starting from relatively moderate levels around 12.54 in early 2017, the ratio increased significantly to a range between approximately 14 and 22 from mid-2017 through 2019. A sharp uptick is observed in 2020 and especially in 2021, with values escalating dramatically, peaking at 261.43 in early 2021, followed by a decline but remaining elevated compared to earlier years. The substantial rise in payables turnover indicates that the company accelerated the rate at which it cycles through its accounts payable, potentially reflecting faster payments to suppliers or a change in purchasing behavior or supplier terms during 2021 and 2022.
- Average Payables Payment Period
- The average payables payment period exhibits an inverse pattern to payables turnover, as expected due to their mathematical relationship. Initially, the company maintained payment periods ranging from about 16 to 29 days between 2017 and 2019. This period largely contracted throughout 2020, reaching lows near 9 to 11 days, suggesting faster payments. The most pronounced decrease occurs in 2021, with payment periods dropping to an extremely low range of 1 to 3 days, consistent with the spike in payables turnover. In 2022, the payment period slightly rises but remains very low compared to historical levels. This shift implies a strategic move towards significantly faster settlement of payables during 2021 and 2022.
- Overall Insights
- The data indicates a marked shift in cash management strategies starting around 2020, intensifying in 2021, characterized by accelerated payables turnover and shortened payment periods. This could suggest improved liquidity management, stronger negotiating abilities with suppliers, or operational adjustments in accounts payable procedures. The unusual spike in payables turnover and the corresponding contraction in payment days in 2021, followed by partial normalization in 2022, warrant further investigation to understand underlying causes such as potential changes in supplier contracts, payment policies, or external economic conditions affecting accounts payable management.
Cash Conversion Cycle
Diamondback Energy Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Average inventory processing period | ||||||||||||||||||||||||||||||
| Average receivable collection period | ||||||||||||||||||||||||||||||
| Average payables payment period | ||||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Cash conversion cycle1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period shows minor fluctuations over the observed quarters. Starting from a low of 2 days in mid-2018, it increased slightly to a peak of 6 days during early 2019 and mid-2021. The period generally remains within a narrow range of 2 to 6 days, indicating relative stability in inventory turnover speed with a slight tendency towards longer processing times during specific quarters.
- Average receivable collection period
- The receivable collection period demonstrates more pronounced variability. It initially decreased from 49 days in early 2017 to a low of 21 days in mid-2020, suggesting improved efficiency in receivables management during this interval. However, following mid-2020, the collection period extended again, peaking at 64 days at the end of 2021, which highlights a notable slowdown in collections. By the latest period, there is a reduction back to 26 days, indicating a recovery toward a more efficient collection cycle.
- Average payables payment period
- The payables payment period fluctuates significantly. Early data points show relatively longer payment periods, around 25 to 29 days, decreasing sharply to as low as 1 day in early 2022. This decline points to a quicker payment trend during the later periods, potentially reflecting a change in payment policies or improved cash availability. The low values toward the end of the dataset suggest the company has accelerated its payables settlement substantially.
- Cash conversion cycle
- The cash conversion cycle (CCC) metrics align with the underlying components trends. Initially, the CCC varies moderately between 19 and 35 days but experiences a marked spike to 61 days during early 2021, indicating a period where cash was tied up longer in operating activities. Following this peak, the CCC declines steadily to 23 days by the last recorded period. The fluctuations in CCC appear driven largely by volatility in receivables and payables periods, with the inventory days being relatively stable. The post-peak decline in CCC suggests improved overall cash flow management and operating efficiency in the most recent quarters.