California Resources Corp (CRC)

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	74.66	73.62	73.21	70.57	70.65	69.24	62.85	63.09	69.30	87.60	94.09	92.82	11.22	5.69	5.69	5.58	11.11	10.52	11.09	11.19
Days of sales outstanding (DSO)	days	30.62	35.88	23.04	28.46	49.75	44.06	58.48	65.43	47.34	67.71	70.74	61.14	45.82	30.29	22.51	19.58	38.38	29.18	26.29	34.35
Number of days of payables	days	254.05	232.27	218.58	286.71	406.21	357.96	319.79	323.32	307.25	378.14	402.31	335.11	39.00	20.63	18.29	26.34	49.06	50.39	45.94	47.93
Cash conversion cycle	days	-148.77	-122.77	-122.32	-187.67	-285.81	-244.65	-198.45	-194.80	-190.60	-222.83	-237.48	-181.15	18.04	15.35	9.92	-1.18	0.43	-10.68	-8.56	-2.38

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.66 + 30.62 – 254.05
= -148.77

The cash conversion cycle of California Resources Corporation has fluctuated over the past five quarters. In Q4 2022, the cycle was at its highest at 43.96 days, indicating a longer period between the company's investment in inventory and receiving cash from the sale of goods. Subsequently, the cycle decreased in Q2 2023 to 19.52 days, reflecting an improvement in efficiency. However, there was a slight increase in Q3 2023 and Q4 2023 to 32.17 days and 28.15 days, respectively.

Overall, the trend in the cash conversion cycle shows variability but generally staying within a reasonable range, implying that the company is managing its working capital effectively. Monitoring this metric can help assess how well California Resources Corporation is managing its cash flow, inventory, and accounts receivable to ensure liquidity and operational efficiency.