Antero Resources Corp (AR)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 3,845.98 | 5,217.26 | 1,021.06 | 615.09 |
| Days of sales outstanding (DSO) | days | 3.32 | 1.81 | 6.24 | 2.97 | 14.19 |
| Number of days of payables | days | — | 86.48 | 37.85 | 10.03 | 2.69 |
| Cash conversion cycle | days | 3.32 | 3,761.31 | 5,185.65 | 1,014.00 | 626.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 3.32 – —
= 3.32
The cash conversion cycle of Antero Resources Corp has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 3.32 days, indicating that it took around 3.32 days for Antero Resources Corp to convert its investments in inventory and accounts receivable into cash. This represents an increase from the previous year when the cycle was 1.81 days.
In 2021, the cash conversion cycle was significantly longer at 6.24 days, suggesting that the company took a longer time to convert its investments into cash compared to the preceding years. However, there was a noticeable improvement in 2020 when the cycle decreased to 2.97 days.
The highest cash conversion cycle was observed in 2019 at 14.21 days, indicating that Antero Resources Corp faced challenges in efficiently converting its investments into cash during that period.
Overall, the trend in the cash conversion cycle for Antero Resources Corp shows variability, with fluctuations occurring from year to year. It is important for the company to closely monitor and manage its operating cycle to ensure a more efficient conversion of investments into cash.
Peer comparison
Dec 31, 2023