Antero Midstream Partners LP (AM)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
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
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
Cash conversion cycle	days	0.00	0.00	0.00	0.00	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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Antero Midstream Partners LP has shown a decreasing trend over the years, indicating improved efficiency in managing its working capital. As of December 31, 2024, the cash conversion cycle has reached 0 days, suggesting that the company is able to convert its investments in inventory and receivables into cash almost immediately, which is a positive sign of liquidity.

The significant improvement in the cash conversion cycle from around 50 days in March 2020 to 0 days in December 2024 reflects the company's effective management of its cash flow and working capital components. This trend suggests that the company has been able to streamline its operations, reduce the time it takes to convert inventory and receivables into cash, and manage its payables efficiently.

A cash conversion cycle of 0 days means that Antero Midstream Partners LP is operating with minimal cash tied up in working capital, allowing the company to reinvest cash into other areas or return it to shareholders. However, it is important for the company to ensure that the cash conversion cycle remains at an optimal level to sustain operations and support future growth initiatives.