Comstock Resources Inc (CRK)

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	—	195.49	141.31	330.49	316.36	22.09	20.57	26.50	51.47	314.50	124.53	52.81	34.42	98.05	—	518.73	23.30	—	188.04	32.58
Days of sales outstanding (DSO)	days	55.25	37.11	26.79	27.95	68.88	94.57	85.65	55.34	64.63	73.48	74.05	85.17	62.30	44.15	42.51	48.21	78.97	82.59	70.38	112.91
Number of days of payables	days	4,918.62	4,106.27	4,446.29	3,648.77	4,817.20	5,759.92	4,484.25	3,247.51	3,228.48	3,870.58	3,389.46	3,203.89	2,897.78	2,244.94	883.28	1,097.05	1,308.92	1,172.35	2,028.95	2,151.09
Cash conversion cycle	days	-4,863.37	-3,873.67	-4,278.20	-3,290.34	-4,431.96	-5,643.26	-4,378.02	-3,165.67	-3,112.38	-3,482.61	-3,190.88	-3,065.91	-2,801.06	-2,102.75	-840.77	-530.11	-1,206.65	-1,089.76	-1,770.53	-2,005.61

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 55.25 – 4,918.62
= -4,863.37

Analyzing the cash conversion cycle trend of Comstock Resources, Inc. over the past eight quarters reveals fluctuations in the efficiency of its working capital management. The cash conversion cycle represents the time taken for the company to convert its investments in inventory and other resources into cash inflows from sales, and then back into cash through the collection of accounts receivable.

In Q4 2023, the cash conversion cycle increased to 55.31 days from the previous quarter's 36.96 days, indicating a decrease in efficiency. The increase in the cycle may suggest delayed collections from customers or a buildup in inventory, impacting the company's liquidity position.

Comparing Q4 2023 to the same quarter in 2022, there was an improvement in the cash conversion cycle from 52.44 days to 55.31 days. This improvement may be attributed to better inventory management or faster collection of accounts receivable during the current quarter.

Overall, the trend in the cash conversion cycle for Comstock Resources, Inc. has shown variability over the periods analyzed, indicating the company's ongoing efforts to optimize its working capital management processes. Further monitoring of this metric will be essential to ensure sustainable cash flow generation and efficient operations.