CNX Resources Corp (CNX)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 6.52 | 21.75 | 36.63 | 55.10 |
| Days of sales outstanding (DSO) | days | 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 | 39.88 | 23.67 | 53.48 | 68.71 |
| Number of days of payables | days | 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 | 189.17 | 890.06 | 994.10 | 762.73 |
| Cash conversion cycle | days | -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 | -142.77 | -844.64 | -903.99 | -638.92 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.32 + 14.24 – 403.36
= -334.80
The cash conversion cycle of CNX Resources Corp has shown a decreasing trend from Q4 2022 to Q1 2023, indicating an improvement in the company's efficiency in managing its working capital. In Q4 2022, the cash conversion cycle was 32.98 days, significantly higher compared to the most recent quarter, Q4 2023, when it decreased to 14.24 days.
This improvement suggests that CNX Resources Corp has been able to optimize its cash management, reduce the time it takes to convert its investments in inventory and receivables into cash, and shorten the time it takes to pay its liabilities. A shorter cash conversion cycle signifies that the company is able to generate cash more quickly, which can be beneficial for funding operations, investing in growth opportunities, and reducing reliance on external financing.
Overall, the downward trend in the cash conversion cycle reflects positively on CNX Resources Corp's liquidity and working capital management practices, potentially enhancing its financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2023