Chord Energy Corp (CHRD)
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 | 8.70 | 8.31 | 9.62 | 10.41 | 10.75 | 9.83 | 10.46 | 10.93 | 10.70 | 14.06 | 12.89 | 10.31 | 12.46 | 14.13 | 17.00 | 17.29 | 14.69 | 10.72 | 9.11 | 7.70 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 8.70 | 8.31 | 9.62 | 10.41 | 10.75 | 9.83 | 10.46 | 10.93 | 10.70 | 14.06 | 12.89 | 10.31 | 12.46 | 14.13 | 17.00 | 17.29 | 14.69 | 10.72 | 9.11 | 7.70 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 8.70 + — – —
= 8.70
The cash conversion cycle of Chord Energy Corp has shown fluctuations over the analyzed period. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, we observe the following trends:
- The cycle started at 7.70 days in March 2020 and increased to 17.29 days in March 2021, indicating a lengthening period for the company to generate cash from its operations.
- Subsequently, there was a slight decrease in the cycle length to 8.31 days by September 30, 2024, potentially suggesting improvements in the company's efficiency in managing its working capital.
- The company saw its cash conversion cycle hit a peak of 17.29 days in March 2021 and showed a decreasing trend until December 31, 2024, where it stood at 8.70 days.
Overall, the company experienced fluctuations in its cash conversion cycle over the period, which could be influenced by factors such as changes in sales, inventory management, and payment terms with suppliers and customers. It is essential for Chord Energy Corp to continue monitoring and managing its cash conversion cycle effectively to ensure optimal working capital utilization and liquidity.
Peer comparison
Dec 31, 2024