ConocoPhillips (COP)
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 | 17.21 | 17.20 | 9.18 | 14.20 | 20.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 17.21 | 17.20 | 9.18 | 14.20 | 20.38 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.21 + — – —
= 17.21
The cash conversion cycle (CCC) of ConocoPhillips has shown variations over the years. In 2020, the CCC was 20.38 days, indicating that it took approximately 20 days for the company to convert its investments in inventory and accounts receivable into cash. The CCC decreased to 14.20 days in 2021, suggesting an improvement in the efficiency of ConocoPhillips' working capital management.
By the end of 2022, the CCC further decreased to 9.18 days, signaling a more efficient conversion of inventory and receivables into cash. However, in 2023, the CCC increased slightly to 17.20 days, possibly due to changes in the company's operating cycle or working capital management practices.
In 2024, the CCC remained relatively stable at 17.21 days. Overall, ConocoPhillips has experienced fluctuations in its cash conversion cycle, with periods of improvement and slight setbacks. Analyzing the CCC can provide insights into the company's working capital efficiency and management strategies.
Peer comparison
Dec 31, 2024