ConocoPhillips (COP)

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	17.18	14.23	13.68	13.98	13.43	11.91	10.27	9.53	9.18	9.79	11.26	12.81	14.20	14.43	17.78	17.88	20.38	20.55	18.14	12.04
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	17.18	14.23	13.68	13.98	13.43	11.91	10.27	9.53	9.18	9.79	11.26	12.81	14.20	14.43	17.78	17.88	20.38	20.55	18.14	12.04

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.18 + — – —
= 17.18

The cash conversion cycle of ConocoPhillips has exhibited fluctuations over the given time period. Starting at 12.04 days on March 31, 2020, the cycle increased to 20.55 days by September 30, 2020, showing prolonged cash conversion time. This trend continued until December 31, 2021, where the cycle remained relatively high at 14.20 days.

However, from March 31, 2022, there was a noticeable improvement in efficiency as the cash conversion cycle decreased consistently. By June 30, 2024, the cycle had reached a low of 13.68 days before showing a slight increase by the end of the period on December 31, 2024, at 17.18 days.

Overall, ConocoPhillips managed its cash conversion cycle effectively, significantly reducing the time taken to convert its investments in inventory and accounts receivable into cash. The downward trend in the cycle indicates enhanced operational efficiency and better management of working capital during the period under review.