Diamondback Energy(Fang) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for FANG compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2021', FANG's payables turnover was 4.21, indicating how promptly the company pays its suppliers. Industry average for Oil & Gas Production in '2021' stood at 4.06.
• In '2022', FANG's payables turnover was 3.79, indicating how promptly the company pays its suppliers. The decline from '2021' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2022' stood at 3.94. Industry average declined by 0.12 from previous year.
• In '2023', FANG's payables turnover was 3.33, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 3.71. Industry average declined by 0.24 from previous year.
• In '2024', FANG's payables turnover was 3.32, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 3.93. Industry average increased by 0.22 compared to previous year.
Overall, FANG's payables turnover has consistently declined during the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.