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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- Cash Flow Statement
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- Selected Financial Data since 2005
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Short-term Activity Ratios (Summary)
EQT Corp., 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).
The receivables turnover ratio demonstrates notable fluctuations across the analyzed period. Starting at 5.8 in March 2019, it increased steadily to peak around 8.3 in June 2020 before declining to a low of approximately 4.27 in September 2021. Subsequently, it rebounded to reach 6.37 by September 2022. This pattern suggests variability in the company's effectiveness in collecting receivables over time, with periods of both improved and weakened collection efficiency.
The payables turnover ratio reveals a distinct downward trend from 5.4 in March 2019 to a trough near 3.76 in December 2020, indicating slower payments to suppliers during this timeframe. However, from early 2021 onward, the ratio reverses direction and shows consistent improvement, increasing to 7.36 by September 2022. This trend reflects a gradual acceleration in the payment process to creditors in the later periods.
Working capital turnover data is limited, with a notable anomaly in June and September 2019 showing exceptionally high ratios (71.75 and 96.08), followed by a sharp decrease to 9.27 in December 2019 and 6.81 in March 2020. The absence of subsequent data impedes a full trend analysis, but the available figures suggest significant volatility in working capital utilization during the earlier part of the timeline.
The average receivable collection period complements the receivables turnover ratio observations. It decreased from 63 days in March 2019 to a low of 44 days in June 2020, implying improved collections during this interval. However, it then lengthened sharply to a peak of 86 days in September 2021 before improving again to 57 days by September 2022. These shifts indicate varying efficiency in collecting payments from customers, with periods of extended collection times followed by recovery.
Similarly, the average payables payment period increased steadily from 68 days in March 2019 to a maximum of 97 days by December 2020, signifying a lengthening of payment terms or slower payments to suppliers. From 2021 onward, a clear declining trend is visible, with this period reducing to 50 days by September 2022. This reduction implies that the company has accelerated its payments, potentially improving supplier relationships or reflecting changes in cash management strategies.
- Summary of trends:
- - Receivables turnover and average collection period display inverse movements corresponding to collection efficiency fluctuations over time.
- - Payables turnover and average payment period also exhibit inverse trends, indicating shifts in supplier payment timing, with improvements noted after 2020.
- - Working capital turnover exhibits extreme volatility in early periods but lacks sufficient data for a full evaluation beyond early 2020.
- - Overall, the data suggests a period of operational adjustment around 2020, followed by measures that improved receivables collection and payables payment efficiency by late 2022.
Turnover Ratios
Average No. Days
Receivables Turnover
EQT Corp., 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | ||||||||||||||||||||
| Accounts receivable, less provision for doubtful accounts | ||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||
| Receivables turnover1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
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).
1 Q3 2022 Calculation
Receivables turnover
= (Sales of natural gas, natural gas liquids and oilQ3 2022
+ Sales of natural gas, natural gas liquids and oilQ2 2022
+ Sales of natural gas, natural gas liquids and oilQ1 2022
+ Sales of natural gas, natural gas liquids and oilQ4 2021)
÷ Accounts receivable, less provision for doubtful accounts
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals substantial fluctuations in the sales of natural gas, natural gas liquids, and oil over the examined periods, with a general upward trajectory starting from the first quarter of 2021. Initially, there was a marked decline from over 1.27 billion USD in early 2019 to approximately 498 million USD by mid-2020. This decline likely corresponds to market or industry-wide challenges experienced during that time. Following this trough, sales began to recover steadily, reaching nearly 3.69 billion USD by the third quarter of 2022, indicating robust growth and increased demand or pricing power in the latter periods.
Accounts receivable, net of provisions for doubtful accounts, mirrored some of this variability but presented a more moderated trend. Beginning at over 817 million USD in early 2019, receivables declined through 2020 to a low point of around 341 million USD by mid-2020. Thereafter, receivables showed a recovery trend, peaking above 2 billion USD by the third quarter of 2022. This increase in receivables aligns with the rising sales figures and may reflect extended credit terms or increased billing amounts concurrent with higher sales volumes.
The receivables turnover ratio exhibited variability across the quarters with no consistent long-term trend. The ratio started at 5.8 times in the first quarter of 2019 and experienced fluctuations through the period, dipping as low as 4.27 times in the third quarter of 2021 and rising again to around 6.37 times by the third quarter of 2022. The turnover ratio’s oscillations suggest varying efficiency in collecting receivables, potentially influenced by changes in credit policies, customer payment behavior, or seasonal factors. The relatively lower turnover ratios observed in some periods may indicate slower collection cycles or higher outstanding balances, whereas higher ratios imply more rapid conversion of receivables to cash.
Overall, the data indicates a recovery and strong growth phase in sales and corresponding receivables after a period of significant decline. However, the fluctuation in receivables turnover ratios suggests that the efficiency of receivables management has varied, which could impact cash flow dynamics. Continuous monitoring of collection practices alongside sales growth is advisable to ensure sustained operational liquidity.
Payables Turnover
EQT Corp., 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | ||||||||||||||||||||
| Accounts payable | ||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||
| Payables turnover1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
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).
1 Q3 2022 Calculation
Payables turnover
= (Sales of natural gas, natural gas liquids and oilQ3 2022
+ Sales of natural gas, natural gas liquids and oilQ2 2022
+ Sales of natural gas, natural gas liquids and oilQ1 2022
+ Sales of natural gas, natural gas liquids and oilQ4 2021)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Sales of natural gas, natural gas liquids and oil
-
The sales figures exhibit notable fluctuations over the observed period. Initially, sales began strong at approximately 1.27 billion USD in the first quarter of 2019, followed by a steady decline reaching a low of roughly 498.8 million USD in the second quarter of 2020. This downward trend coincides with the broader market impacts around that period. Subsequent quarters show a robust recovery, with sales increasing sharply, particularly from the first quarter of 2021 onward.
From March 2021, the sales figures demonstrate a strong upward trajectory, reaching a peak of approximately 3.69 billion USD by the third quarter of 2022. This recovery and growth suggest potentially improved market conditions or increased production and sales volume during this timeframe.
- Accounts payable
-
The accounts payable values reveal a somewhat stable-to-increasing trend throughout the period. Starting at approximately 877.5 million USD in early 2019, accounts payable slightly decreased through to mid-2020 but then resumed an upward trend.
By the second and third quarters of 2021, accounts payable began increasing more noticeably, peaking at over 1.70 billion USD in the second quarter of 2022 before experiencing a minor decrease in the following quarter. This pattern indicates an expanded level of outstanding payables, which may reflect increased purchasing activity or extended payment terms in conjunction with growing business scale or operational demands.
- Payables turnover ratio
-
The payables turnover ratio initially fluctuated around the mid-5s, with a high of 5.79 in the third quarter of 2019 and a decline to lows near 3.76 by the end of 2020, indicating a slower rate of payables turnover in this period. Such a decline suggests that the company was taking longer to settle its obligations during these quarters.
Thereafter, the ratio shows an improving trend, climbing from 3.77 in the first quarter of 2021 to a higher ratio of 7.36 by the third quarter of 2022. This indicates that payables were being turned over more rapidly in the later part of the period and may reflect more efficient working capital management or changes in credit terms with suppliers.
- Overall observations
-
The period under review demonstrates an initial downturn, likely influenced by external market conditions, followed by a significant recovery phase in sales. The increase in accounts payable alongside an improving payables turnover ratio suggests the company was managing its supplier obligations more actively as sales recovered and expanded.
The combined trends point to an enhanced operational scale in the latter quarters, with the company possibly leveraging supplier credit more effectively while concurrently increasing sales volumes.
Working Capital Turnover
EQT Corp., 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Less: Current liabilities | ||||||||||||||||||||
| Working capital | ||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | ||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||
| Working capital turnover1 | ||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||
| Exxon Mobil 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).
1 Q3 2022 Calculation
Working capital turnover
= (Sales of natural gas, natural gas liquids and oilQ3 2022
+ Sales of natural gas, natural gas liquids and oilQ2 2022
+ Sales of natural gas, natural gas liquids and oilQ1 2022
+ Sales of natural gas, natural gas liquids and oilQ4 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital demonstrates considerable volatility throughout the periods. Initially, it showed a significant negative figure, followed by a sharp improvement reaching positive territory in the middle of 2019 and early 2020. However, from mid-2020 onwards, working capital shifted back to negative values and progressively deteriorated, reaching its lowest points in late 2021 and early 2022. This declining trend suggests increased current liabilities relative to current assets or a reduction in liquid assets over time in recent quarters.
- Sales of Natural Gas, Natural Gas Liquids, and Oil
- Sales figures reveal an overall upward trajectory across the span analyzed. Initially, sales decreased in the first half of 2020 but recovered strongly in subsequent periods, with a notable surge occurring towards the end of 2021 and continuing through 2022. This growth indicates increasing revenues from core operations, which may reflect higher volumes, improved pricing, or both.
- Working Capital Turnover
- Working capital turnover ratios were reported only for limited periods in 2019, showing extremely high values, which implies sales were significantly higher than working capital investment, possibly due to the small size or positive changes in working capital at that time. However, the absence of ratios for the remainder of the periods limits the ability to assess operational efficiency consistently over time.
- Summary of Trends and Insights
- Despite improving sales revenues, the deterioration in working capital suggests potential liquidity management challenges or increased short-term obligations. The significant negative working capital in recent quarters could impact operational flexibility and indicate pressure on the company's current asset base. Conversely, the robust sales growth may strengthen cash inflows if managed effectively. Overall, the company exhibits growing top-line performance but faces difficulties maintaining stable working capital levels.
Average Receivable Collection Period
EQT Corp., 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 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 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibited fluctuations over the analyzed periods. It started at 5.8 in the first quarter of 2019, increased steadily to a peak of 8.3 in the second quarter of 2020, indicating improved efficiency in collecting receivables. Afterward, it declined to a low of 4.27 in the third quarter of 2021. In subsequent quarters, the ratio demonstrated a recovery trend, reaching 6.37 by the third quarter of 2022. This pattern reflects a period of varying effectiveness in receivable collections, with notable improvement mid-2020, followed by a decrease and partial recovery.
- Average Receivable Collection Period
- The average collection period inversely mirrored the trends seen in the receivables turnover. It commenced at 63 days in the first quarter of 2019, reduced to its shortest period of 44 days in the second quarter of 2020, signifying quicker collection cycles during that time. Subsequently, this metric increased, peaking at 86 days in the third quarter of 2021, suggesting slower collections. From late 2021 to the third quarter of 2022, the collection period moderately declined to 57 days, indicating some improvement in collection efficiency.
- Summary of Patterns and Insights
- The financial metrics reveal a general trend of enhanced receivables management efficiency through early to mid-2020, with turnover ratios improving and collection periods shortening. However, this efficiency diminished through 2021, as indicated by longer collection periods and lower turnover ratios. The partial recovery in 2022 suggests efforts to regain collection performance but not to the levels observed during peak efficiency. Overall, the data underline variability in the company's receivables management effectiveness across the quarters, reflecting potentially changing operational or market conditions.
Average Payables Payment Period
EQT Corp., 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 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 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The payables turnover ratio exhibits notable fluctuations over the analyzed periods, reflecting variations in the company's efficiency in managing its payables. Initially, from the first quarter of 2019 through the end of the year, the ratio shows moderate stability with a slight decline in the last quarter. Moving into 2020, there is a clear downward trend, reaching the lowest points in the third and fourth quarters, indicating a slower turnover of payables during this period. In 2021, the ratio begins to recover, albeit with some variability, and by 2022, it demonstrates a significant upward trend, reaching the highest observed ratio in the last quarter, which implies an improved capacity to settle payables more quickly.
Correspondingly, the average payables payment period, expressed in number of days, moves inversely to the payables turnover ratio, as expected. Early in 2019, the payment period decreases, suggesting quicker payments. However, during 2020, it elongates considerably, peaking at 97 days, which aligns with the lower payables turnover ratios in the same timeframe. This pattern indicates a lengthening of the time taken by the company to pay its suppliers, possibly reflecting liquidity management measures or operational challenges. In 2021, the payment period shows a gradual decrease, becoming more pronounced in 2022, when it shortens substantially to 50 days by the third quarter, consistent with the increasing payables turnover ratio.
Overall, the analysis of these two metrics reveals a period of payment postponement and slower payables management during 2020, likely influenced by external or internal factors affecting the company's liquidity or operations. This trend reverses starting in 2021, with a marked improvement in the management and turnover of payables, achieving the most efficient levels towards the end of the observation window. Such dynamics suggest a strategic or operational shift towards enhanced payables processing and financial management in the latter periods.
- Payables Turnover Ratio
- Declined through 2020, hitting lowest points in Q3 and Q4, then gradually rising through 2021 to peak in late 2022.
- Average Payables Payment Period
- Increased during 2020, reaching up to 97 days in Q4, then decreased steadily through 2021 and 2022, reaching 50 days by Q3 2022.
- Implications
- The inverse movement between the two metrics indicates changes in payment practices, with a tendency to delay payments in 2020 and a return to more prompt payment behavior in subsequent years.