Coterra Energy Inc (CTRA)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	17.38	17.75	17.81	21.52	24.81	27.32	27.46	23.25	25.78	15.39	13.84	14.26	16.48	10.59	15.93	14.48	13.53	30.02	37.51	38.06
Days of sales outstanding (DSO)	days	73.83	49.73	59.76	57.54	62.46	41.05	29.25	30.92	57.18	65.49	94.36	91.02	118.53	73.93	48.88	47.49	54.97	72.83	61.98	58.90
Number of days of payables	days	314.75	298.25	306.81	326.10	337.67	274.50	264.46	345.90	345.36	272.70	314.06	303.96	315.69	188.18	152.21	154.27	146.15	304.97	337.89	383.35
Cash conversion cycle	days	-223.54	-230.77	-229.23	-247.05	-250.40	-206.13	-207.75	-291.73	-262.40	-191.82	-205.86	-198.69	-180.68	-103.66	-87.41	-92.30	-77.64	-202.12	-238.40	-286.39

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.38 + 73.83 – 314.75
= -223.54

Coterra Energy Inc has consistently maintained a negative cash conversion cycle over the past few years, indicating efficient management of its operating cycle. The company's cash conversion cycle has ranged from around -77 days to -291 days from December 31, 2020, to September 30, 2024.

A negative cash conversion cycle means that Coterra Energy is able to convert its investments in inventory into cash quickly. This efficiency suggests that the company is effectively managing its accounts receivable, inventory, and accounts payable.

Overall, the negative trend in the cash conversion cycle reflects Coterra Energy's ability to operate efficiently and generate cash flow from its operating activities. It indicates a healthy liquidity position and effective working capital management within the company's operations.