DT Midstream Inc (DTM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 9.91 | 18.50 | 28.59 | 37.35 | 12.71 | 23.37 | 34.68 | |||
| Days of sales outstanding (DSO) | days | 68.49 | 59.45 | 58.59 | 48.14 | 63.88 | 60.83 | 57.02 | 50.62 | |||
| Number of days of payables | days | 149.17 | 204.80 | 210.25 | 179.98 | 202.02 | 128.93 | 57.54 | 38.32 | |||
| Cash conversion cycle | days | -80.69 | -135.44 | -133.16 | -103.24 | -100.80 | -55.39 | 22.86 | 46.97 |
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 eight quarters. In Q4 2023, the company's cash conversion cycle was 66.90 days, reflecting an increase compared to the previous quarter. This indicates that it took the company longer to convert its investments in inventory into cash during this period.
However, compared to Q3 2022 when the cash conversion cycle was at its highest at 63.88 days, the recent cycle in Q4 2023 is still higher. The trend over the past two years shows that the company has been trying to optimize its cash conversion cycle, as seen by the improvements made from Q1 2022 to Q3 2022. Despite the recent increase in Q4 2023, DT Midstream Inc has generally managed to maintain a relatively stable and efficient cash conversion cycle. The company may need to focus on managing its working capital components more effectively to further optimize its cash conversion cycle in the future.
Peer comparison
Dec 31, 2023