CVR Energy Inc (CVI)
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 | 27.65 | 26.75 | 21.62 | 23.23 | 23.32 | 24.52 | 30.91 | 32.95 | 25.15 | 24.82 | 26.52 | 31.01 | 26.40 | 22.23 | 19.29 | 13.73 | 24.05 | 24.51 | 23.39 | 23.06 |
| Days of sales outstanding (DSO) | days | 11.29 | 11.86 | 11.06 | 11.14 | 12.73 | 11.31 | 16.04 | 15.81 | 16.38 | 14.02 | 15.91 | 19.35 | 20.62 | 11.09 | 10.81 | 9.23 | 10.44 | 10.11 | 8.96 | 10.16 |
| Number of days of payables | days | 24.26 | 24.82 | 19.23 | 19.53 | 18.58 | 21.61 | 28.51 | 34.20 | 21.26 | 24.05 | 28.36 | 34.21 | 24.98 | 20.22 | 18.07 | 22.39 | 26.56 | 24.64 | 19.37 | 20.54 |
| Cash conversion cycle | days | 14.68 | 13.79 | 13.45 | 14.84 | 17.48 | 14.22 | 18.44 | 14.55 | 20.28 | 14.79 | 14.07 | 16.16 | 22.04 | 13.09 | 12.04 | 0.58 | 7.92 | 9.99 | 12.97 | 12.68 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.65 + 11.29 – 24.26
= 14.68
The cash conversion cycle of CVR Energy Inc has shown fluctuations over the past eight quarters. The trend indicates that the company's ability to convert its resources effectively has improved in the most recent quarters compared to the previous ones. The cash conversion cycle decreased from 17.28 days in Q4 2022 to 15.14 days in Q4 2023, reflecting a positive development in managing the company's cash flows.
Furthermore, in the recent quarters, CVR Energy Inc has demonstrated a shorter cash conversion cycle, indicating that the company is efficiently managing its cash resources, inventory, and accounts receivable. This efficiency suggests that the company is able to collect payments from customers, convert inventory to sales, and pay suppliers in a timely manner.
Overall, the decreasing trend in the cash conversion cycle of CVR Energy Inc indicates improved operational efficiency and effective working capital management. This trend is a positive indicator of the company's ability to generate cash and indicates potential for sustainable growth in the future.
Peer comparison
Dec 31, 2023