Expand Energy Corporation (EXE)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	24.82	44.70	73.34	51.96	42.35
Number of days of payables	days	1,048.14	1,342.04	936.83	14.20	483.43
Cash conversion cycle	days	-1,023.32	-1,297.35	-863.49	37.76	-441.08

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 24.82 – 1,048.14
= -1,023.32

The cash conversion cycle of Expand Energy Corporation has shown significant fluctuations over the past five years. The cycle has ranged from being very negative, indicating efficient management of working capital, to positive values, suggesting potential issues in managing cash flows.

In 2023, the cash conversion cycle improved to -1,023.32 days, representing a more efficient conversion of inventory and receivables into cash compared to the previous year. This improvement could be attributed to better inventory management and quicker collection of receivables.

In 2022, the cash conversion cycle deteriorated to -1,297.35 days, indicating a slowdown in cash conversion compared to 2021. This may have been influenced by factors such as delays in collecting receivables or excess inventory levels.

In 2021, the cash conversion cycle was also negative at -863.49 days, but it was less efficient compared to 2023. This suggests that the company was still managing its working capital effectively but not as well as in the following year.

In 2020, there was a significant positive cash conversion cycle of 37.76 days, indicating a slower conversion of inventory and receivables into cash. This could be a result of increased investment in inventory or longer payment cycles to suppliers.

In 2019, the cash conversion cycle was negative at -441.08 days, suggesting efficient management of working capital. However, it was not as optimal as in 2023, indicating potential room for further improvement in cash flow management.

Overall, the cash conversion cycle of Expand Energy Corporation has varied over the years, highlighting fluctuations in the company's efficiency in managing its working capital and converting assets into cash. Monitoring and improving this cycle is crucial for optimizing cash flow and liquidity management in the long term.