HF Sinclair Corp (DINO)
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 | 35.89 | 39.76 | 37.38 | 49.15 | 43.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 35.89 | 39.76 | 37.38 | 49.15 | 43.89 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.89 + — – —
= 35.89
HF Sinclair Corp's cash conversion cycle has shown some fluctuations over the past five years.
On December 31, 2020, the cash conversion cycle was 43.89 days, indicating that it took the company nearly 44 days to convert its resources into cash. This metric increased to 49.15 days by the end of 2021, suggesting a slowdown in the conversion of inventory and receivables into cash.
However, in the following years, there was an improvement in the cash conversion cycle. By December 31, 2022, the cycle had decreased to 37.38 days, indicating that the company was able to manage its working capital more efficiently. This trend continued into 2023, with the cycle further improving to 39.76 days.
By the end of December 31, 2024, the cash conversion cycle reached its lowest point at 35.89 days, suggesting that HF Sinclair Corp was better at managing its inventory, payables, and receivables to generate cash more quickly.
Overall, the company's cash conversion cycle has shown variability over the years, with some fluctuations but a general trend towards more efficient working capital management. This indicates that the company has been able to streamline its operations to enhance cash flows and liquidity.