APA Corporation (APA)
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 | 27.99 | 36.68 | 36.43 | 41.82 | 40.81 | 39.02 | 40.69 | 37.90 | 32.34 | 36.88 | 37.30 | 44.35 | 38.84 | 42.02 | 45.83 | 50.48 | 50.87 | 48.40 | 41.97 | 37.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 27.99 | 36.68 | 36.43 | 41.82 | 40.81 | 39.02 | 40.69 | 37.90 | 32.34 | 36.88 | 37.30 | 44.35 | 38.84 | 42.02 | 45.83 | 50.48 | 50.87 | 48.40 | 41.97 | 37.24 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.99 + — – —
= 27.99
The cash conversion cycle of APA Corporation has shown fluctuations over the past few years. Initially, the cycle was around 37 days but increased gradually to reach its peak at 50.87 days by December 31, 2020. Subsequently, there was a downward trend in the cycle, reaching as low as 27.99 days by December 31, 2024.
Overall, APA Corporation has made improvements in managing its cash conversion cycle efficiently over the years, indicating effectiveness in managing its working capital and liquidity. The decreasing trend in the cycle shows that the company has been able to reduce the time taken to convert its investments in inventory and other resources into cash, which is a positive sign for the company's financial health.
Peer comparison
Dec 31, 2024