Antero Resources Corp (AR)
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 | — | 3.61 | — | 4,035.08 | — | 3,386.23 | 3,482.73 | 3,658.20 | 3,845.98 | 4,893.09 | 4,969.49 | 5,433.19 | 5,222.91 | 3,838.53 | 1.35 | 2,964.82 | 39.47 | 698.91 | 78.71 | 520.63 |
| Days of sales outstanding (DSO) | days | 2.90 | 2.19 | 1.94 | 3.33 | 3.32 | 2.42 | 2.07 | 1.42 | 1.81 | 1.16 | 1.57 | 3.97 | 6.24 | 3.59 | 3.90 | 9.36 | 2.97 | 10.25 | 5.37 | 7.16 |
| Number of days of payables | days | — | — | — | — | — | — | — | 89.74 | 86.48 | 143.10 | 130.07 | 112.05 | 37.89 | 78.05 | 50.73 | 48.04 | 10.03 | 14.05 | 5.47 | 5.43 |
| Cash conversion cycle | days | 2.90 | 5.81 | 1.94 | 4,038.41 | 3.32 | 3,388.65 | 3,484.80 | 3,569.88 | 3,761.31 | 4,751.16 | 4,840.99 | 5,325.12 | 5,191.26 | 3,764.07 | -45.48 | 2,926.14 | 32.41 | 695.11 | 78.61 | 522.36 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 2.90 – —
= 2.90
The cash conversion cycle is a key metric that indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Antero Resources Corp's cash conversion cycle has shown significant fluctuations over the periods analyzed:
1. The company experienced a high cash conversion cycle of 5,325.12 days on March 31, 2022, indicating a potential inefficiency in converting its resources into cash flows within a reasonable time frame.
2. The cycle decreased to 1.94 days on June 30, 2024, suggesting a significant improvement in the company's ability to convert investments into cash quickly.
3. On September 30, 2024, the cycle increased slightly to 5.81 days, indicating a moderate increase in the time it takes for Antero Resources Corp to convert its resources into cash.
4. By December 31, 2024, the cycle decreased to 2.90 days, indicating a more efficient cash conversion process compared to previous periods.
Overall, Antero Resources Corp's cash conversion cycle has shown fluctuations, with some periods indicating potential inefficiencies in cash management and others showing improvements and better efficiency in converting resources into cash. It is important for the company to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and financial performance.
Peer comparison
Dec 31, 2024