Comstock Resources Inc (CRK)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	310.43	50.59	33.81	23.21
Days of sales outstanding (DSO)	days	55.25	67.76	175.47	80.57	83.09
Number of days of payables	days	4,814.59	4,726.95	3,173.16	2,846.10	1,303.87
Cash conversion cycle	days	-4,759.34	-4,348.76	-2,947.10	-2,731.72	-1,197.58

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 55.25 – 4,814.59
= -4,759.34

The cash conversion cycle of Comstock Resources, Inc. has been showing fluctuations over the past five years. In 2023, the company's cash conversion cycle was 55.31 days, indicating that it takes approximately 55.31 days for the company to convert its investments in inventory and other resources into cash flows from sales. This was slightly higher than the 52.44 days in 2022 but lower compared to the 2020 and 2019 figures of 65.37 days and 89.80 days, respectively.

A decreasing trend from 2019 to 2023 suggests that the company has been managing its cash conversion cycle more efficiently over the years, which can be indicative of improved inventory management and faster collection of receivables. However, the increase from 2022 to 2023 warrants further investigation to understand the factors contributing to the longer cash conversion cycle in the most recent period.

Overall, the cash conversion cycle trend of Comstock Resources, Inc. shows a mix of improvements and setbacks, highlighting the importance of closely monitoring and managing working capital components to ensure optimal cash flow operations.