CNX Resources Corp (CNX)

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	37.39	34.33	38.19	39.52	54.32	54.16	67.64	72.08	67.19	46.64	37.30	17.46	17.37	11.12	11.84	15.24	5.47	4.30	4.37	4.29
Days of sales outstanding (DSO)	days	56.88	26.50	26.40	19.33	14.24	8.13	10.29	15.26	43.33	66.94	52.51	31.15	44.16	44.49	38.96	43.71	43.60	26.10	43.64	38.62
Number of days of payables	days	316.25	318.12	332.25	448.44	403.36	503.39	419.50	481.18	473.39	402.07	397.53	325.20	344.05	217.46	246.37	240.81	66.98	49.89	62.87	71.80
Cash conversion cycle	days	-221.98	-257.29	-267.66	-389.58	-334.80	-441.10	-341.58	-393.84	-362.88	-288.50	-307.72	-276.59	-282.52	-161.85	-195.57	-181.86	-17.91	-19.49	-14.86	-28.88

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.39 + 56.88 – 316.25
= -221.98

The cash conversion cycle of CNX Resources Corp has exhibited significant fluctuations over the period under review. The company managed to maintain a negative cash conversion cycle for most quarters, indicating efficient management of its working capital needs. However, there were noticeable variations in the days taken to convert inventory into cash and subsequently collect receivables.

From March 31, 2020, to June 30, 2021, the cash conversion cycle remained relatively stable, with fluctuating but generally low numbers. During this period, the company was able to swiftly convert its inventory and receivables into cash, leading to negative days in the cycle.

However, starting from March 31, 2021, the cash conversion cycle experienced a significant downward trend, reaching its lowest point on December 31, 2022, before gradually improving. This extended period of negative days suggests that CNX Resources Corp was utilizing its working capital inefficiently, potentially indicating issues in inventory management or collection processes.

The company showed some improvement in its cash conversion cycle towards the end of the period, with decreasing negative days from March 31, 2023, to December 31, 2024. This suggests that CNX Resources Corp may have implemented measures to streamline its working capital processes and enhance efficiency in converting inventory and receivables into cash.

In conclusion, while CNX Resources Corp maintained a generally efficient cash conversion cycle with negative days for most of the period, the fluctuations observed indicate the need for continuous monitoring and management of working capital to optimize the company's liquidity and cash flow positions.