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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Short-term Activity Ratios (Summary)
Devon Energy Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
The analysis of the quarterly financial ratios reveals distinct patterns in the company's operational efficiency, liquidity management, and working capital dynamics over the observed periods.
- Inventory Turnover
- The inventory turnover ratio is only available for the latest quarters, showing a decreasing trend from 42.67 to 31.89. This indicates that the company is turning over its inventory less frequently, which may suggest slower sales or increased inventory levels.
- Receivables Turnover
- The receivables turnover ratio exhibits notable fluctuations. It started relatively high around 9.26 to 10.89 in early 2019, dipped to lows between 4.13 and 5.88 during 2021, then recovered steadily to 11.88 by September 2023 before a slight decline to 8.32. This suggests varying efficiency in collecting receivables, with periods of slower collections potentially impacting cash flow.
- Payables Turnover
- The payables turnover ratio demonstrates variability without a clear long-term trend, fluctuating between about 5.77 and 12.96. Notably, a lower ratio in early 2021 indicates slower payments to suppliers, whereas spikes above 12 at the end of 2020 and beginning of 2022 suggest quicker payment cycles.
- Working Capital Turnover
- This ratio shows significant volatility, including an unusually high spike to 1631.5 in mid-2021, which could be attributed to exceptional circumstances or data anomalies. Apart from this spike, the ratio varies broadly from approximately 2.65 to 74.34, indicating inconsistent efficiency in utilizing working capital to generate sales. The large fluctuations imply challenges in working capital management over the periods analyzed.
- Average Inventory Processing Period
- For the latest periods, the average inventory processing period remains largely stable at 9 days, increasing slightly to 11 days by the end of 2022, which could be reflective of more inventory holding or process delays.
- Average Receivable Collection Period
- The average collection period fluctuates notably, ranging between 30 and 49 days in 2019-2020, spiking to 88 days in early 2021, then gradually improving to around 31-33 days in mid to late 2023. This pattern highlights periods of delayed collections impacting liquidity, followed by an improving trend in recent quarters.
- Operating Cycle
- The operating cycle values for recent quarters vary between 40 and 55 days, reflecting the sum of inventory and receivables periods and indicating moderate efficiency in the overall operational process.
- Average Payables Payment Period
- The average payables period ranges from about 28 to 47 days with no consistent directional trend, but it tends to be longer in 2021 and stabilizes around 40 days in recent quarters. This suggests the company is maintaining its payment terms but with some variability.
- Cash Conversion Cycle
- The available cash conversion cycle data for recent periods shows small values (6, 2, and 15 days), indicating a relatively short duration between cash outflows and inflows. The absence of data in some quarters prevents full trend analysis.
Overall, the company demonstrates periods of fluctuating efficiency in managing receivables, payables, and working capital, with some improvements in receivables collection and a generally short cash conversion cycle recently. However, the decline in inventory turnover and variability in working capital turnover ratios may warrant further investigation to optimize operational and financial performance.
Turnover Ratios
Average No. Days
Inventory Turnover
Devon Energy Corp., inventory turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cost of revenues | |||||||||||||||||||||||||
| Inventory | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Inventory turnover
= (Cost of revenuesQ3 2023
+ Cost of revenuesQ2 2023
+ Cost of revenuesQ1 2023
+ Cost of revenuesQ4 2022)
÷ Inventory
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends and insights regarding the company's operational efficiency and cost management over the observed periods.
- Cost of Revenues
- The cost of revenues exhibited a general upward trend from early 2019 through the end of 2021, increasing notably from approximately $1,033 million in Q1 2019 to a peak of $2,159 million in Q4 2021. This substantial rise suggests either increased production costs or higher sales volumes during this period.
- After this peak, there was some fluctuation through 2022, with costs remaining elevated but showing a slight decline toward the end of the year. In 2023, the costs of revenues moderated somewhat, ranging between $1,770 million and $1,917 million across the intramural quarters, indicating some stabilization but at a higher level than earlier years.
- Inventory
- Inventory levels are only recorded from Q1 2023 onwards, starting at $201 million and showing minor fluctuations around this figure. The range between $201 million and $233 million over four quarters indicates relative stability in inventory holdings during this recent period.
- Inventory Turnover
- The inventory turnover ratio, also recorded only from Q1 2023 forward, displayed a decreasing trend from 42.67 to 31.89 by Q4 2023. This downward movement suggests that the company is turning over its inventory more slowly over the year, which may reflect either slower sales velocity or increased inventory levels relative to cost of goods sold.
- Overall Insights
- The marked increase in cost of revenues through 2019 to 2021 could point to rising operational expenses or greater activity; however, the cost has remained relatively high but stabilized in 2022 and 2023. Concurrently, the inventory levels and turnover ratios starting in 2023 indicate cautious inventory management but a deceleration in inventory turnover, which may warrant further analysis to ensure it does not signal inefficiencies or potential overstocking.
Receivables Turnover
Devon Energy Corp., receivables turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| Accounts receivable | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Receivables turnover
= (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
÷ Accounts receivable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue figures demonstrate notable volatility over the observed periods. Starting at $1,079 million in the first quarter of 2019, revenues increased significantly through 2019, peaking at $2,087 million in the first quarter of 2020. This was followed by a sharp decline in the subsequent quarters of 2020, hitting a low of $394 million in the second quarter of 2020. Revenues then recovered gradually through 2021, culminating in a strong peak of $4,561 million in the fourth quarter. In 2022, revenues remained elevated, reaching an all-time high of $5,626 million in the second quarter. However, a gradual decline ensued in late 2022 and continuing into 2023, where revenues fell back to approximately $3,836 million by the third quarter. This pattern indicates a cyclical revenue dynamic with a sharp dip likely linked to external disruptions, followed by rapid recovery and subsequent normalization.
- Accounts Receivable Dynamics
- The accounts receivable balances reflect somewhat contrasting movement relative to revenues. Beginning at $1,038 million in early 2019, receivables gradually declined through mid-2020, reaching a low of $493 million in the third quarter of 2020. From late 2020 onward, accounts receivable increased steadily, peaking at $2,348 million in the second quarter of 2022. Notably, this peak precedes the highest revenue quarter observed. Following this, receivables decreased moderately and then stabilized in the range of $1,500 million to $1,800 million through the first three quarters of 2023. The rising receivables from late 2020 to mid-2022 suggest an accumulation of uncollected dues that outpaced revenue growth during that period, followed by some improvement in collection or credit management thereafter.
- Receivables Turnover Ratio
- The receivables turnover ratio displays significant fluctuation, indicative of changing efficiency in credit and collection practices or changes in sales composition. High turnover ratios above 10 were recorded in early 2019 and early 2020, implying rapid collection relative to credit sales. This ratio then declined steeply, reaching a historical low of 4.13 in the first quarter of 2021, coinciding with rising accounts receivable balances. Following this trough, the ratio gradually improved throughout 2021 and into 2022, reaching a level of 10.85 in the fourth quarter of 2022. Afterward, there was a moderate decline in turnover ratio through 2023 to around 8.32 in the third quarter. Overall, the turnover ratio trend mirrors the inverse movement in accounts receivable and suggests periods of both tighter and more relaxed credit terms or collection efficiency over the analyzed timeframe.
- Summary Insights
- The data depicts a business subject to external shocks and recovery phases, with revenues sharply dipping in mid-2020 and subsequently rebounding. Accounts receivable increased substantially following the revenue rebound, which might indicate extended credit terms or slower collections during that growth phase. The receivables turnover ratio confirms varying effectiveness in collections, with a noteworthy impairment in early 2021 followed by a recuperation. These patterns suggest an operational environment impacted by market conditions influencing revenue generation and credit management over time. Attention to optimizing receivables management could be beneficial, especially given the scale of receivables recorded during peak periods.
Payables Turnover
Devon Energy Corp., payables turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cost of revenues | |||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Payables turnover
= (Cost of revenuesQ3 2023
+ Cost of revenuesQ2 2023
+ Cost of revenuesQ1 2023
+ Cost of revenuesQ4 2022)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The cost of revenues exhibits notable fluctuations over the observed quarters. Initially, from early 2019 through the end of that year, there is a gradual decline in costs, reaching a low in the second quarter of 2020. Subsequently, these costs rise sharply from mid-2020, peaking in the last quarter of 2021. Following this peak, the cost of revenues generally trends downward through 2022 and into early 2023, with some minor variability noted in recent quarters.
Accounts payable display a moderate downward trend from the first quarter of 2019 to the end of 2019, followed by a steep decline in mid-2020, reaching the lowest observed value in the third quarter of 2020. After this trough, accounts payable increase steadily, peaking in the fourth quarter of 2022, before showing a slight decline in the first three quarters of 2023.
The payables turnover ratio demonstrates considerable volatility during the period. It starts relatively high in early 2019, dips mid-year, and then fluctuates considerably from late 2019 through 2020, reaching a notable high at the end of 2020. In 2021 and 2022, the ratio remains generally elevated, peaking slightly in the last quarter of 2021. However, it declines gradually through 2022 and into 2023, stabilizing at a lower level compared to the previous years but remaining above the lower levels seen in early 2019 and mid-2020.
- Cost of Revenues
- Exhibited a downward trend in 2019, with a trough in mid-2020, followed by an increase peaking in late 2021, and then a decline through 2022 and early 2023.
- Accounts Payable
- Showed a decreasing trend in 2019 into early 2020, hitting a low in mid-2020, thereafter increasing steadily to a peak in late 2022, with a slight decrease in early 2023.
- Payables Turnover Ratio
- Displayed high variability with initial moderate levels in 2019, fluctuating through 2020, rising to higher peaks in late 2020 and 2021, and then gradually declining but maintaining moderate levels into 2023.
Overall, the interplay between cost of revenues and accounts payable suggests a dynamic operational environment. The inverse relationship observed at several points—such as rising costs coinciding with increasing payables—may reflect changes in purchasing, payment policies, or operational scale. The fluctuations in the payables turnover ratio underscore shifts in the company's efficiency in managing payables over the period, with possible impacts from market conditions or internal strategic adjustments.
Working Capital Turnover
Devon Energy Corp., working capital turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Working capital turnover
= (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibited fluctuations over the observed quarters. It initially increased from 735 million to a peak of 2501 million by March 31, 2020. After this peak, it gradually declined until June 30, 2021, reaching a low of 4 million. Subsequently, it recovered somewhat, peaking again around June 30, 2022, at 2257 million, but then dropped significantly by the end of the period, ending in negative territory (-118 million) by September 30, 2023. This pattern indicates periods of strong liquidity followed by tighter working capital management or constraints in later periods.
- Revenues
- Revenues demonstrated noticeable volatility aligned with some of the shifts in working capital. From the start of the timeline, revenues grew from 1079 million to a high of 2087 million in the first quarter of 2020, before sharply dropping to 394 million in the next quarter, likely reflecting market or operational disruptions. A steady recovery ensued, with revenues rising consistently through 2021 and reaching a substantial peak of 5626 million in June 2022. Following this peak, revenues contracted again, stabilizing in the range of approximately 3400 to 3800 million towards the end of the timeline. This suggests cyclical demand or commodity price influences affecting revenue generation.
- Working Capital Turnover
- The working capital turnover ratio, which measures the efficiency of using working capital to generate revenues, showed high variability. Initially, the ratio declined from 13.08 to below 3 around the first half of 2020, indicating that revenues were no longer as efficiently generated from working capital resources during the downturn. Notably, in June 2021, there was an extreme spike to 1631.5, which appears to be an outlier possibly caused by the near depletion of working capital (close to zero), inflating the ratio. Outside of this anomaly, the ratio generally ranged between approximately 3 and 12, with some increase in efficiency towards late 2021 and early 2022. In mid to late 2022, the ratio rose markedly again, reaching over 74 by March 2023, which aligns with very low or negative working capital levels, indicating potential liquidity stress or changes in financial strategy.
- Overall Insights
- The data reveals a cycle of expansion and contraction in both liquidity and sales revenue, possibly reflective of broader economic or sector-specific conditions. The working capital pattern indicates fluctuating liquidity conditions, with potential liquidity strains in the most recent quarters. Revenue trends suggest exposure to volatile market conditions, with peaks and troughs spanning the observed periods. Working capital turnover fluctuations, particularly the extreme values, point to periods of operational stress or financial restructuring. Monitoring working capital adequacy relative to revenue generation would be critical in assessing financial stability going forward.
Average Inventory Processing Period
Devon Energy Corp., average inventory processing period calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio is only available from the first quarter of 2023 onwards, showing a decreasing trend over the four most recent quarters. It started at 42.67 in March 2023 and declined to 31.89 by September 2023. This indicates that the company’s inventory was turning over at a slower rate as the year progressed.
- Average Inventory Processing Period
- The average inventory processing period also shows data beginning in 2023 and reflects a slight upward trend. The period remained consistent at 9 days for the first three quarters of 2023 but increased to 11 days in the third quarter. This suggests that the company took slightly longer to process its inventory towards the end of the period analyzed.
- General Observations
- The available data suggests a lengthening cycle in inventory management during 2023, with inventory turnover slowing and processing periods extending. This may reflect changes in operational efficiency, inventory demand, or supply chain dynamics during this timeframe.
Average Receivable Collection Period
Devon Energy Corp., average receivable collection period calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio and the average receivable collection period over multiple quarters reveals notable fluctuations and trends in the company's efficiency in collecting receivables.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates considerable variability throughout the periods. Starting at 9.26 in the first quarter of 2019, the ratio sees an initial increase, reaching a peak of 12.17 by March 2020. This suggests improved effectiveness in collecting receivables during the early part of the timeline. However, the ratio subsequently declines, bottoming out at 4.13 in March 2021, indicating a slower turnover of receivables and potentially longer credit collections during this interval. Following this low, the ratio recovers steadily, climbing back up to 11.88 in September 2023 before experiencing a slight decline to 8.32 by the last recorded period.
- Average Receivable Collection Period
- The average collection period inversely reflects the turnover ratio, exhibiting corresponding fluctuations in the number of days required to collect receivables. Initially, collection periods were relatively moderate, around 34 to 39 days, consistent with the higher turnover ratios. During early 2021, the collection period peaked dramatically at 88 days, coinciding with the lowest turnover ratio, signaling inefficiencies or delays in the collection process. Afterward, a consistent decrease is observed, returning to lower values near 31 days by mid-2023, indicative of improved collection efforts. However, by the final quarter analyzed, the collection period increases again to 44 days, suggesting slight deterioration in receivables management efficiency.
- Overall Trends and Insights
- There is a clear inverse relationship between the receivables turnover ratio and the average collection period as expected in financial analysis. The period around 2020 to early 2021 appears to be a phase of weakened receivables management, possibly influenced by external factors affecting payment behaviors or credit policies. Recovery and improvement are evident in the subsequent periods, with more efficient collections restoring turnover ratios to near earlier levels. The recent uptick in collection days towards the end of the dataset may warrant attention to ensure the trend does not signify emerging issues in credit control or customer payment capacity.
Operating Cycle
Devon Energy Corp., operating cycle calculation (quarterly data)
No. days
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
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| Selected Financial Data | |||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Inventory Processing Period
- The inventory processing period data is available only for the most recent quarters starting from March 31, 2023. During this period, the days of inventory processing remained stable at 9 days for three quarters, then increased slightly to 11 days in the last quarter. This indicates a generally consistent inventory turnover rate with a minor slowdown towards the end of the observed period.
- Receivable Collection Period
- The average receivable collection period exhibits considerable fluctuations across the analyzed time frame. Initially, from March 2019 to December 2019, the collection period varied between 34 and 49 days, indicating moderate variability in how quickly receivables were collected. In 2020, the period remained fairly steady between 30 and 45 days, suggesting some improvement or stabilization. However, starting in 2021, there was a notable increase, peaking at 88 days in March 2021, representing a significant delay in collection. Subsequently, the collection period demonstrated a gradual decline but still remained elevated relative to the 2019 and 2020 levels, fluctuating between 31 and 51 days from 2022 through September 2023. This pattern points to periods of strained receivables management or customer payment delays, particularly in early 2021, followed by some improvement but without a full return to pre-2021 levels.
- Operating Cycle
- Data for the operating cycle is limited and only available in the most recent quarters of 2023. The operating cycle, calculated as the sum of the inventory processing and receivable collection periods, shows a slight downward trend from 55 days in the earliest available quarter to 40 days, then a small increase to 43 days in the last quarter. This pattern reflects the earlier noted stabilization in inventory management combined with a generally improving, though still variable, receivables collection period. The operating cycle remains relatively short, suggesting overall efficient conversion of inventory and receivables into cash in the recent quarters.
Average Payables Payment Period
Devon Energy Corp., average payables payment period calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
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| 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 | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio demonstrates considerable fluctuations over the analyzed quarters. Initially, the ratio hovered around 9 to 10 from early 2019 through late 2019, suggesting a moderate frequency in paying suppliers. Moving into 2020, there was a notable dip to a low of 7.8 in the third quarter, followed by a sharp increase to nearly 13 by the year-end, indicating a rapid payment cycle at that point. In 2021, the ratio again showed variability, with a low near 5.77 early in the year and recovering to above 12 by year-end. The first three quarters of 2022 maintained a consistently high turnover, exceeding 11, though a downward trend started towards year-end and into 2023, where the ratio stabilized around 9 to 9.2. Overall, this pattern reflects periods of both accelerated and decelerated payment velocity, with a tendency towards faster payments in the latter half of 2019 and much of 2021-2022, followed by some moderation in 2023.
- Average Payables Payment Period (Days)
- The average payment period shows an inverse relationship to the payables turnover, as expected. Early 2019 displayed payment cycles around 35 to 40 days, slightly increasing to a peak of 47 days in the third quarter of 2020, indicating slower payments. Subsequently, the period shortened dramatically to 28 days by the end of 2020, corresponding with the high turnover ratio in the same period. During 2021, the payment period became more variable, reaching a high of 63 days in the first quarter, which aligns with the lowest turnover ratio observed. In 2022, the payment period stabilized in the range of 29 to 32 days for most of the year, reflecting a faster payment approach. Toward late 2022 and into 2023, the payment period trended upwards to stabilize around 40 days, indicating a slight slowing in payment speed compared to the immediate prior year.
- Summary of Trends and Insights
- The financial data reveals cyclical behavior in payables management, with phases of accelerated payments alternating with periods of delayed payments. Notably, late 2019 and most of 2021 through 2022 were characterized by quicker settlements of payables, as reflected both in higher turnover ratios and shorter payment periods. Conversely, early 2020 and portions of 2021 exhibited extended payment cycles, possibly linked to external operational or market influences. The stabilization of payment terms near 40 days in recent quarters suggests a move toward a consistent, moderate payment policy. Such fluctuations in payables dynamics are important indicators of working capital management and supplier relationship strategies, which may have been adjusted in response to evolving business conditions or liquidity considerations.
Cash Conversion Cycle
Devon Energy Corp., cash conversion cycle calculation (quarterly data)
No. days
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 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).
1 Q3 2023 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 inventory processing period was not reported until the first quarter of 2023. From that point, it maintained a consistent level of 9 days for three quarters before increasing slightly to 11 days in the last reported quarter. This indicates relatively stable inventory management with a minor uptick towards the end.
- Average Receivable Collection Period
- The receivable collection period fluctuated notably over the observed timeframe. Initially, the period ranged between 30 and 49 days from 2019 through mid-2020. Starting in 2021, a significant increase was observed, peaking at 88 days in the first quarter of 2021, indicating slower collection during that time. Subsequently, the collection period decreased steadily, returning to a range between 31 and 44 days from early 2023 onwards, suggesting improved efficiency in receivables management in recent quarters.
- Average Payables Payment Period
- The payables payment period exhibited variability without a clear directional trend. Early values hovered around the mid-30s to 40s in days. In 2021, there was a notable increase, reaching 63 days in the first quarter, suggesting extended payment terms or delayed payments during that period. Following this peak, the period generally stabilized around 29 to 40 days, indicating a return to more typical payment patterns in recent quarters.
- Cash Conversion Cycle
- The cash conversion cycle data is limited but shows a slight upward trend in the recent quarters of 2023. It was recorded at 6 days initially, dropped to 2 days, then increased to 15 days by the last quarter. This rise may reflect lengthier working capital cycles, potentially due to changes in inventory processing, receivables collection, or payables payment dynamics.