ConocoPhillips (COP)

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	22.03	18.44	15.08	13.34	12.69	13.32	15.86	19.31	22.00	24.64	31.53	35.33	37.56	38.94	33.81	21.82	29.23	25.15	26.98	23.49
Days of sales outstanding (DSO)	days	—	—	—	0.06	0.05	0.07	0.39	0.48	1.00	1.28	1.51	2.13	2.25	2.24	20.66	26.30	33.85	33.94	34.20	35.71
Number of days of payables	days	—	—	—	53.84	63.64	67.84	75.11	80.18	91.09	96.87	99.50	121.60	100.06	83.50	70.92	87.17	90.48	82.90	89.64	88.39
Cash conversion cycle	days	22.03	18.44	15.08	-40.44	-50.90	-54.44	-58.86	-60.40	-68.10	-70.95	-66.46	-84.14	-60.24	-42.32	-16.45	-39.05	-27.40	-23.82	-28.46	-29.18

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.03 + — – —
= 22.03

The cash conversion cycle of Conoco Phillips has shown varying trends in recent quarters, ranging from -26.18 days to -13.04 days. A negative cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly than it pays its accounts payable.

In Q4 2023, the company's cash conversion cycle was -26.18 days, reflecting a longer cycle compared to the previous quarter. This suggests that Conoco Phillips took longer to convert its investments into cash during this period. However, the cycle improved in Q3 2023 to -21.14 days but then decreased further in Q2 2023 to -18.27 days.

Overall, the company has demonstrated an efficient management of working capital throughout the analyzed quarters, as indicated by consistently negative cash conversion cycles. However, the fluctuations in the cycle may warrant further investigation into operational efficiencies and cash flow management strategies.