DT Midstream Inc (DTM)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 37.35 | 45.17 |
| Days of sales outstanding (DSO) | days | 68.49 | 63.88 | 75.17 |
| Number of days of payables | days | 149.17 | 202.02 | 39.75 |
| Cash conversion cycle | days | -80.69 | -100.80 | 80.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 68.49 – 149.17
= -80.69
The cash conversion cycle of DT Midstream Inc has shown fluctuations over the past four years. In 2023, the company's cash conversion cycle was 66.90 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. This represents a slight increase from the previous year's figure of 63.88 days.
Comparing to 2021, there was a significant improvement in the cash conversion cycle in 2022, where it decreased to 77.35 days from 193.63 days. This improvement suggests that the company managed its working capital more efficiently, possibly by reducing inventory levels or speeding up the collection of receivables.
Overall, the trend in the cash conversion cycle of DT Midstream Inc is showing a positive direction, indicating an improvement in the company's operational efficiency and liquidity management over the past few years.
Peer comparison
Dec 31, 2023