Warrior Met Coal Inc (HCC)
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 | 59.70 | 57.56 | 51.02 | 49.96 | 58.69 | 35.25 | 46.54 | 44.75 | 59.52 | 56.93 | 66.19 | 57.69 | 31.10 | 47.28 | 65.31 | 65.38 | 57.35 | 80.80 | 74.84 | 50.85 |
| Days of sales outstanding (DSO) | days | 33.73 | 33.99 | 38.71 | 45.68 | 23.66 | 59.55 | 46.72 | 40.79 | 32.95 | 44.04 | 67.50 | 79.41 | 45.43 | 31.35 | 28.61 | 36.17 | 41.22 | 38.30 | 41.63 | 49.90 |
| Number of days of payables | days | 11.55 | 13.57 | 19.21 | 13.02 | 11.56 | 14.27 | 11.05 | 10.29 | 15.08 | 20.54 | 22.10 | 31.55 | 17.65 | 19.68 | 22.34 | 31.48 | 28.56 | 25.96 | 27.14 | 23.62 |
| Cash conversion cycle | days | 81.88 | 77.97 | 70.52 | 82.62 | 70.79 | 80.53 | 82.20 | 75.25 | 77.39 | 80.43 | 111.59 | 105.55 | 58.88 | 58.95 | 71.58 | 70.07 | 70.01 | 93.15 | 89.33 | 77.12 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.70 + 33.73 – 11.55
= 81.88
Warrior Met Coal Inc's cash conversion cycle measures how long it takes for the company to convert its investments in inventory and accounts receivable into cash. A shorter cash conversion cycle indicates the company is able to generate cash more quickly from its operations.
Analyzing Warrior Met Coal Inc's cash conversion cycle data from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of its cash management. The company experienced a peak cash conversion cycle of 111.59 days on June 30, 2022, suggesting possible challenges in managing working capital efficiently during that period.
However, there were improvements in the cash conversion cycle towards the end of the period, with a low of 70.52 days on June 30, 2024. This indicates that Warrior Met Coal Inc managed its inventory and accounts receivable effectively, resulting in faster cash generation from its operating activities.
Overall, fluctuations in the cash conversion cycle of Warrior Met Coal Inc reflect changes in working capital management efficiency over time, with the company showing periods of improvement and challenges in cash flow conversion. Monitoring this metric can provide insights into the company's operational performance and efficiency in cash management.
Peer comparison
Dec 31, 2024