HF Sinclair Corp (DINO)
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 | 38.47 | 35.59 | 41.08 | 42.34 | 39.76 | 41.93 | 41.37 | 40.51 | 37.38 | 43.14 | 54.10 | 61.67 | 49.15 | 52.40 | 53.32 | 63.82 | 43.89 | 37.59 | 35.19 | 23.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 38.47 | 35.59 | 41.08 | 42.34 | 39.76 | 41.93 | 41.37 | 40.51 | 37.38 | 43.14 | 54.10 | 61.67 | 49.15 | 52.40 | 53.32 | 63.82 | 43.89 | 37.59 | 35.19 | 23.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.47 + — – —
= 38.47
HF Sinclair Corp's cash conversion cycle has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of how long it takes for a company to convert its resources into cash flows.
The company's cash conversion cycle ranged from a low of 23.57 days on March 31, 2020, to a high of 63.82 days on March 31, 2021, indicating a significant increase in the time taken to convert resources into cash during that period. Thereafter, the cycle decreased steadily, reaching a low of 35.59 days on September 30, 2024.
Overall, despite fluctuations, the company managed to reduce its cash conversion cycle by the end of the period, suggesting improvements in managing its working capital and operational efficiency. However, it's essential to monitor this metric closely to ensure the company maintains an optimal balance between cash flow, inventory management, and accounts receivable turnover.