Atlas Energy Solutions Inc. (AESI)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.14 | 12.81 | |||
| Days of sales outstanding (DSO) | days | 71.50 | 93.39 | |||
| Number of days of payables | days | 64.36 | 70.80 | |||
| Cash conversion cycle | days | 15.27 | 35.40 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 8.14 + 71.50 – 64.36
= 15.27
The cash conversion cycle of Atlas Energy Solutions Inc. has shown significant improvement from 35.40 days in June 2024 to 15.27 days in September 2024. The reduction in the cash conversion cycle indicates that the company is managing its cash flows more efficiently, potentially through better inventory management, quicker collection of receivables, or delaying payments to suppliers. This efficiency improvement suggests that Atlas Energy Solutions Inc. is able to convert its investments in inventory back into cash more rapidly, which can lead to improved liquidity and overall financial health. It would be advisable for the company to continue monitoring and managing its cash conversion cycle to sustain this positive trend.
Peer comparison
Sep 30, 2024