DT Midstream Inc (DTM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 4.94 | 8.92 | 13.70 | 17.61 | 8.60 | 16.36 | 30.55 | 42.25 | 20.28 | 47.61 | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4.94 | 8.92 | 13.70 | 17.61 | 8.60 | 16.36 | 30.55 | 42.25 | 20.28 | 47.61 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle (CCC) of DT Midstream Inc has shown fluctuations over the periods provided in the data. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In December 2020 and March 2021, the CCC was at 0.00 days, indicating that the company efficiently managed its working capital during these periods. However, in June 2021, the CCC increased significantly to 47.61 days, suggesting a delay in converting investments into cash.
Subsequently, there was an improvement in the CCC, with a decrease to 20.28 days in September 2021, and further improvement to 8.60 days by September 2022. This shows that the company effectively managed its working capital and accelerated its cash conversion process during these periods.
The CCC fluctuated between 8.60 days and 17.61 days from September 2022 to December 2022, indicating relative stability in the efficiency of the company’s cash conversion cycle.
In the following periods up to September 2024, the CCC decreased consistently, reaching its lowest point of 0.00 days by December 2023 and maintaining this efficiency until September 2024. This indicates that DT Midstream Inc effectively managed its working capital and sped up its cash conversion process, potentially improving liquidity and overall financial health.
Peer comparison
Dec 31, 2024