Consol Energy Inc (CEIX)
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 | 88.24 | 66.78 | 69.05 | 164.76 | 191.98 |
| Days of sales outstanding (DSO) | days | 22.79 | 34.15 | 33.55 | 57.32 | 44.05 |
| Number of days of payables | days | 137.38 | 131.19 | 84.07 | 208.83 | 376.72 |
| Cash conversion cycle | days | -26.35 | -30.27 | 18.53 | 13.26 | -140.70 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.24 + 22.79 – 137.38
= -26.35
The cash conversion cycle of Consol Energy Inc has shown fluctuations over the past five years, reflecting the company's efficiency in managing its working capital. The trend indicates an improvement in the company's ability to convert its resources into cash over time.
In 2023, the cash conversion cycle decreased to 23.35 days, reaching its lowest point in the period under review. This suggests that the company streamlined its operations, resulting in quicker conversion of inventory into sales and ultimately into cash during the year.
Comparing to previous years, the company has made progress in its cash conversion cycle efficiency. In 2022, the cycle stood at 31.48 days, showing a slight improvement from the 33.50 days in 2021. However, there was a significant improvement from 2020, where the cycle was at 66.59 days, indicating operational challenges or inefficiencies during that year.
Furthermore, in 2019, the cash conversion cycle was 45.82 days, suggesting the company was able to convert its resources into cash more quickly compared to 2020 but faced some challenges in efficiency that year.
Overall, the decreasing trend in the cash conversion cycle is a positive indicator, as it signifies that Consol Energy Inc has been able to enhance its working capital management and optimize its operational processes to generate cash more effectively in recent years.
Peer comparison
Dec 31, 2023