Devon Energy Corporation (DVN)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	202.87	190.68	166.36	176.26	171.41	—	—	—	61.64	—	—	—	—	76.40	67.96	58.65	134.80	15.25	27.93	—
Days of sales outstanding (DSO)	days	44.16	50.09	37.94	35.95	37.36	43.47	54.87	57.99	52.00	66.91	71.94	96.75	51.64	40.78	43.81	41.16	59.44	43.65	46.42	53.02
Number of days of payables	days	1,614.80	1,838.09	1,690.09	1,829.99	2,016.88	2,132.76	2,241.68	1,734.71	1,057.69	1,065.93	774.41	782.60	88.30	81.31	56.35	66.48	122.34	61.48	72.14	72.92
Cash conversion cycle	days	-1,367.77	-1,597.32	-1,485.79	-1,617.78	-1,808.11	-2,089.29	-2,186.82	-1,676.73	-944.04	-999.01	-702.47	-685.84	-36.66	35.87	55.41	33.32	71.91	-2.57	2.21	-19.90

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 202.87 + 44.16 – 1,614.80
= -1,367.77

The cash conversion cycle of Devon Energy Corp. has shown some fluctuations over the past eight quarters. In Q1 2022, the company had the longest cash conversion cycle of 51.26 days, indicating that it took a relatively longer time to convert its investments in inventory and other resources into cash. However, the cycle decreased in the following quarters, reaching its lowest point of 30.73 days in Q1 2023.

Although there have been some ups and downs, the company has managed to keep its cash conversion cycle below 50 days for the most part, which is generally seen as a positive sign. A shorter cash conversion cycle indicates that Devon Energy Corp. is efficient in managing its working capital and quickly converting its investments into cash flow.

Overall, Devon Energy Corp. has demonstrated some variability in its cash conversion cycle, but the downward trend from Q2 2022 to Q1 2023 suggests that the company has been making improvements in its working capital management. It will be important for the company to continue monitoring and optimizing its cash conversion cycle to ensure efficient operations and sustainable growth.