CNX Resources Corp (CNX)
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 | 52.49 | 65.36 | 15.88 | 5.37 | 5.25 |
| Days of sales outstanding (DSO) | days | 14.24 | 102.64 | 163.56 | 43.60 | 39.79 |
| Number of days of payables | days | 389.78 | 460.52 | 314.54 | 65.74 | 152.17 |
| Cash conversion cycle | days | -323.04 | -292.53 | -135.11 | -16.77 | -107.13 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.49 + 14.24 – 389.78
= -323.04
The cash conversion cycle of CNX Resources Corp has shown a decreasing trend over the past five years, indicating improvement in efficiency in managing its operating cycle. In 2023, the company's cash conversion cycle stood at 14.24 days, significantly lower than the figures from the previous years, which were 32.98 days in 2022, 51.80 days in 2021, 50.55 days in 2020, and 49.47 days in 2019.
A shorter cash conversion cycle indicates that CNX Resources Corp is taking less time to convert its investments in inventory and other resources into cash inflows from sales. This can be a positive sign, suggesting effective inventory management, faster collection of accounts receivable, and efficient payment of accounts payable.
Overall, the declining trend in the cash conversion cycle for CNX Resources Corp over the years reflects the company's efforts to streamline its operations and improve its liquidity position.
Peer comparison
Dec 31, 2023