EQT Corporation (EQT)

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	136.79	83.73	99.18	141.06	108.36	—	—	—	80.36	328.44	154.34	106.74	123.67	69.18	123.19	138.36	108.79	79.49	80.83	40.20
Days of sales outstanding (DSO)	days	48.35	24.46	18.79	21.35	55.56	64.78	70.65	48.17	68.60	81.61	68.88	85.85	67.60	62.07	55.14	69.39	75.12	53.38	58.91	78.85
Number of days of payables	days	177.87	168.03	152.32	166.28	210.03	210.50	218.12	187.27	198.08	272.12	195.08	200.72	165.52	95.21	92.38	90.92	106.62	77.78	87.24	95.28
Cash conversion cycle	days	7.27	-59.83	-34.35	-3.87	-46.11	-145.71	-147.47	-139.10	-49.12	137.93	28.14	-8.13	25.75	36.04	85.94	116.84	77.29	55.08	52.50	23.77

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 136.79 + 48.35 – 177.87
= 7.27

The cash conversion cycle of EQT Corp has shown fluctuating trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 48.35 days, indicating that it took approximately 48 days to convert its investments in inventory and other resources into cash flow from sales. This represents a significant improvement from the previous quarter, where the cycle was higher at 125.36 days.

Looking further back, in Q2 2023, the cash conversion cycle was at its lowest point over the eight quarters, standing at 40.18 days. This suggests that the company was managing its working capital efficiently, converting its investments into cash quickly. In Q1 2023, the cycle increased slightly to 33.54 days but remained relatively short compared to other quarters.

In comparison, the cash conversion cycles in Q4 2022, Q3 2022, and Q2 2022 were higher, indicating that EQT Corp took longer to convert its investments into cash during those periods. Notably, in Q3 2022, the cycle peaked at 91.14 days, reflecting potential challenges in working capital management.

In summary, EQT Corp's cash conversion cycle has shown fluctuations over the past eight quarters, with periods of both efficiency and longer conversion times. It is important for the company to closely monitor and manage its working capital to ensure a consistent and efficient cash conversion cycle, which can ultimately impact its liquidity and financial performance.