APA Corporation (APA)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 28.54 40.81 32.34 38.84 50.87
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 28.54 40.81 32.34 38.84 50.87

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.54 + — – —
= 28.54

The cash conversion cycle for APA Corporation has shown a decreasing trend over the years. In December 2020, the cash conversion cycle was 50.87 days, indicating that it took the company almost 51 days to convert its investments in inventory and other resources back into cash. By December 2024, the cash conversion cycle had decreased to 28.54 days, reflecting an improvement in the company's efficiency in managing its working capital.

The decreasing trend suggests that APA Corporation has been able to streamline its operations and optimize its working capital management practices. A lower cash conversion cycle indicates that the company is able to generate cash more quickly from its operating activities, which can be a positive indicator of operational efficiency and liquidity management.

Overall, the decreasing trend in the cash conversion cycle for APA Corporation is a positive sign, as it shows the company's ability to efficiently manage its working capital and convert its investments back into cash in a shorter period of time.


See also:

APA Corporation Cash Conversion Cycle