CVR Energy Inc (CVI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.74 | 27.65 | 23.32 | 25.15 | 26.41 |
| Days of sales outstanding (DSO) | days | 14.68 | 11.29 | 12.73 | 16.38 | 20.62 |
| Number of days of payables | days | 26.52 | 24.26 | 18.58 | 21.25 | 24.99 |
| Cash conversion cycle | days | 12.90 | 14.68 | 17.48 | 20.28 | 22.04 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.74 + 14.68 – 26.52
= 12.90
The cash conversion cycle of CVR Energy Inc has shown a consistent downward trend over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 22.04 days, which reduced to 20.28 days by December 31, 2021. The trend continued with further improvements, reaching 17.48 days by December 31, 2022, 14.68 days by December 31, 2023, and 12.90 days by December 31, 2024.
A decreasing cash conversion cycle indicates that CVR Energy Inc has been able to better manage its working capital and convert its inventory and receivables into cash more efficiently over the years. This trend suggests that the company has improved its liquidity position and is able to generate cash more quickly from its operations. Overall, the decreasing trend in the cash conversion cycle reflects positively on the company's operational efficiency and financial management.
Peer comparison
Dec 31, 2024