Antero Resources Corp (AR)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	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	75.52	958.33	3,615.26	4,843.94
Days of sales outstanding (DSO)	days	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	14.19	2.37	4.09	4.31
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	2.80	8.54	43.95	65.44
Cash conversion cycle	days	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	86.91	952.15	3,575.39	4,782.81

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 shown fluctuations over the past eight quarters.

In Q1 2022, the cash conversion cycle was 3.97 days, indicating that the company took almost 4 days to convert its investments in inventory and other resources into cash. This could suggest a longer period to generate cash from its operational activities.

In the following quarters, the cash conversion cycle improved significantly, reaching its lowest point of 1.17 days in Q3 2022. This suggests that Antero Resources Corp was able to manage its cash flow more efficiently during this period, possibly through better inventory management or quicker collection of receivables.

However, the cash conversion cycle increased again in Q4 2022 to 1.81 days, indicating a slight delay in the conversion of resources into cash. This trend continued into Q1 2023, with a further increase to 1.42 days, demonstrating a potential challenge in converting investments into cash as efficiently as in the previous quarters.

In Q2 and Q3 2023, the cash conversion cycle continued to decrease, reaching 2.07 days and 2.42 days respectively. Although these values were higher compared to the previous quarters, they still indicate an improvement in cash conversion efficiency.

Finally, in Q4 2023, the cash conversion cycle increased to 3.32 days, signaling a potential slowdown in the company's ability to convert investments into cash during the period.

Overall, the fluctuating trend in Antero Resources Corp's cash conversion cycle suggests variations in the company's efficiency in managing its working capital and converting resources into cash over the past eight quarters. Further analysis would be needed to understand the specific factors driving these fluctuations and their potential impact on the company's financial performance.