Chord Energy Corp (CHRD)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Days of inventory on hand (DOH)	days	34.34	30.48	27.79	30.82	34.16	42.12	51.57	40.10	50.52	90.37	89.04	2.16	2.62	2.70	2.42	81.66	88.29	82.32	25.75	20.20
Days of sales outstanding (DSO)	days	89.11	95.99	70.50	74.71	68.92	73.30	64.98	70.16	76.29	61.63	83.07	90.01	60.17	51.43	44.87	69.97	67.88	67.00	76.70	68.48
Number of days of payables	days	16.30	1.22	6.08	4.00	18.24	22.60	3.92	2.46	3.73	17.63	13.20	0.48	0.10	0.38	1.09	41.57	43.24	41.51	7.22	12.29
Cash conversion cycle	days	107.15	125.26	92.21	101.52	84.84	92.82	112.63	107.81	123.08	134.37	158.91	91.70	62.69	53.76	46.19	110.06	112.92	107.82	95.23	76.38

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.34 + 89.11 – 16.30
= 107.15

The cash conversion cycle of Chord Energy Corp has fluctuated over the past eight quarters. In Q4 2023, the cash conversion cycle was 88.34 days, showing an improvement compared to the previous quarter where it was 95.38 days. This suggests that Chord Energy Corp was able to efficiently convert its investments in inventory and receivables into cash during the most recent quarter.

Looking further back, the company's cash conversion cycle was also lower in Q2 2023 at 70.04 days and Q1 2023 at 74.21 days, indicating a relatively efficient cash management during those periods. However, there was a slight increase in the cycle during Q4 2022 at 78.24 days, Q3 2022 at 85.53 days, and Q2 2022 at 79.45 days, reflecting potential challenges in managing working capital during those quarters.

The longest cash conversion cycle was observed in Q1 2022 at 98.07 days, suggesting that Chord Energy Corp took a longer time to convert its investments in inventory and receivables into cash during that period.

Overall, Chord Energy Corp's cash conversion cycle has shown some variability, indicating fluctuations in its operational efficiency and working capital management practices over the past two years. It is important for the company to continue monitoring and improving its cash conversion cycle to ensure optimal cash flow and liquidity management.