Crescent Energy Co (CRGY)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 8.07 | — | 56.04 | 69.80 | 60.75 | 96.76 | 20.67 | 29.79 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 8.07 | 0.00 | 56.04 | 69.80 | 60.75 | 96.76 | 20.67 | 29.79 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Crescent Energy Co's cash conversion cycle has shown significant fluctuations over the past few quarters. The company has effectively managed to maintain a cash conversion cycle of 0 days for several quarters, indicating efficient management of its working capital during those periods. This suggests that Crescent Energy Co was able to quickly convert its investments in inventory and accounts receivable into cash, and then used that cash to pay off its accounts payable.
However, in the last few quarters, there has been an increase in the cash conversion cycle, reaching a peak of 96.76 days in June 30, 2023. This suggests a slowdown in the company's ability to convert its investments into cash, which could be a result of slower inventory turnover or delayed collections from customers.
Subsequently, Crescent Energy Co improved its cash conversion cycle to 8.07 days in September 30, 2024, indicating a more efficient use of working capital and a quicker conversion of investments into cash during that period.
Overall, Crescent Energy Co should focus on maintaining a lower cash conversion cycle to optimize its working capital management and enhance its liquidity position. Efforts to streamline inventory management, accelerate accounts receivable collections, and negotiate favorable payment terms with suppliers could help the company improve its cash conversion cycle in the future.
Peer comparison
Dec 31, 2024