Diamondback Energy(Fang) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for FANG compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', FANG's receivables turnover was 10.06, showing efficiency in collecting outstanding receivables. Industry average for Oil & Gas Production in '2021' stood at 5.72.
• In '2022', FANG's receivables turnover was 11.41, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 6.40. Industry average increased by 0.68 compared to previous year.
• In '2023', FANG's receivables turnover was 9.01, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 5.98. Industry average declined by 0.42 from previous year.
• In '2024', FANG's receivables turnover was 9.07, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2024' stood at 6.06. Industry average increased by 0.07 compared to previous year.
Overall, FANG's receivables turnover has consistently declined during the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.