CNX Resources Corp (CNX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.80 | 52.49 | 65.36 | 15.88 | 5.37 |
| Days of sales outstanding (DSO) | days | 56.88 | 14.24 | 102.64 | 163.56 | 43.60 |
| Number of days of payables | days | 302.79 | 389.78 | 460.52 | 314.54 | 65.74 |
| Cash conversion cycle | days | -210.11 | -323.04 | -292.53 | -135.11 | -16.77 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.80 + 56.88 – 302.79
= -210.11
The cash conversion cycle of CNX Resources Corp has shown a trend of improvement over the years, indicating effective management of working capital and operating efficiency. The company's cash conversion cycle decreased significantly from -16.77 days in December 2020 to -135.11 days in December 2021, reflecting a faster conversion of inventory into cash.
By December 2022, the cash conversion cycle further decreased to -292.53 days, signaling an even quicker cycle of cash inflows and outflows. This trend continued as of December 2023, with a cash conversion cycle of -323.04 days, implying efficient management of accounts receivable and accounts payable.
However, by December 2024, the cash conversion cycle saw a slight increase to -210.11 days, possibly indicating a longer cash conversion process compared to the previous year. Overall, CNX Resources Corp has exhibited a strong ability to convert its working capital into cash efficiently, enabling better liquidity management and potentially enhancing its financial position.
Peer comparison
Dec 31, 2024