EQT Corporation (EQT)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	112.89	136.79	83.73	99.18	141.06	108.36	—	180.76	—	80.36	328.44	154.34	106.74	123.67	69.18	123.19	138.36
Days of sales outstanding (DSO)	days	85.14	42.99	44.15	34.55	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
Number of days of payables	days	157.05	146.93	163.69	155.24	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
Cash conversion cycle	days	-71.92	-103.94	-119.54	-7.80	7.27	-59.83	-34.35	-3.87	-46.11	-145.71	33.29	-139.10	-49.12	137.93	28.14	-8.13	25.75	36.04	85.94	116.84

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 85.14 – 157.05
= -71.92

The cash conversion cycle of EQT Corporation has shown significant fluctuations over the periods provided.

Initially, the company's cash conversion cycle was relatively high, ranging from around 85 to 137 days, indicating that EQT was taking longer to turn its investments in inventory and other resources into cash.

However, starting from March 31, 2021, the company managed to significantly reduce its cash conversion cycle to negative days, indicating that EQT was able to convert its investments into cash much faster than before. This trend continued until December 31, 2023, with the cash conversion cycle remaining negative, implying efficient management of working capital and quicker cash generation.

From March 31, 2024, the cash conversion cycle turned positive again, although the days significantly decreased compared to the earlier periods. This positive cash conversion cycle indicates that EQT might be taking longer to convert investments into cash.

Overall, the fluctuating trend in EQT's cash conversion cycle highlights variations in the company's efficiency in managing its working capital and converting investments into cash over the quarters provided.