Antero Midstream Partners LP (AM)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | 0.34 | 0.35 | 36.72 | 34.78 | 32.72 | 31.41 | 32.47 | 33.68 | 35.84 | 37.31 | 37.26 | 37.21 | 40.99 | 37.42 | 55.79 | 48.63 | 64.88 | 97.53 | 240.87 |
| Number of days of payables | days | — | — | — | 23.10 | 26.35 | 28.13 | 29.12 | 39.35 | 27.35 | 28.21 | 27.45 | 16.41 | 3.47 | 7.93 | 5.12 | 5.40 | 3.22 | 15.59 | 51.76 | 146.04 |
| Cash conversion cycle | days | 0.00 | 0.34 | 0.35 | 13.62 | 8.43 | 4.59 | 2.29 | -6.87 | 6.33 | 7.62 | 9.86 | 20.85 | 33.74 | 33.05 | 32.30 | 50.39 | 45.41 | 49.29 | 45.77 | 94.83 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Antero Midstream Corp has exhibited significant fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 3.78 days, indicating that it took the company approximately 3.78 days to convert its investments in inventory and other resources into cash. This represents an improvement from the previous quarter, where the company had a negative cash conversion cycle of -17.51 days.
The negative values observed in some quarters, such as Q3 2023, Q2 2023, Q1 2023, and Q4 2022, suggest that Antero Midstream Corp was able to generate cash from its operating activities before having to pay its suppliers, indicating efficient working capital management. The most notable improvement was seen in Q1 2022, where the company had a cash conversion cycle of -56.63 days, implying a very effective management of working capital.
However, it is important to note that a negative cash conversion cycle may also indicate possible issues, such as excessive inventory or accounts payable management. It is essential for Antero Midstream Corp to maintain an optimal cash conversion cycle to ensure efficient utilization of its resources and sustainable operations. Overall, the company's cash conversion cycle has shown variability, reflecting changing dynamics in its working capital management over the analyzed period.
Peer comparison
Dec 31, 2023