Atlas Energy Solutions Inc. (AESI)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 7.44 | 8.14 | 12.81 |
| Days of sales outstanding (DSO) | days | 59.84 | 71.50 | 93.39 |
| Number of days of payables | days | 51.20 | 64.36 | 70.80 |
| Cash conversion cycle | days | 16.09 | 15.27 | 35.40 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.44 + 59.84 – 51.20
= 16.09
Based on the provided data, Atlas Energy Solutions Inc.'s cash conversion cycle has shown a trend of improvement over the course of the year 2024. In June 30, 2024, the company's cash conversion cycle stood at 35.40 days, indicating that it took approximately 35.40 days for the company to convert its investments in inventory and other resources into cash inflows from sales.
As of September 30, 2024, the cash conversion cycle decreased significantly to 15.27 days, suggesting that the company managed to reduce the time it takes to convert its investments into cash receipts, which is a positive sign for its liquidity management and operational efficiency.
By December 31, 2024, the cash conversion cycle slightly increased to 16.09 days compared to the previous quarter, indicating a slight elongation in the company's operating cycle. Despite the increase, the company still maintained a relatively efficient cash conversion cycle.
Overall, the decreasing trend in the cash conversion cycle from June to September 2024 reflects an improvement in the company's working capital management and operating efficiency. However, the slight increase by the end of the year suggests a need for continued monitoring to ensure optimal cash flow and operational performance.
Peer comparison
Dec 31, 2024