Warrior Met Coal Inc (HCC)
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 | 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 | 40.37 | 41.88 | 36.65 | 39.13 |
| Days of sales outstanding (DSO) | days | 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 | 32.57 | 30.56 | 44.18 | 56.22 |
| Number of days of payables | days | 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 | 19.15 | 25.98 | 19.31 | 23.48 |
| Cash conversion cycle | days | 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 | 53.79 | 46.45 | 61.52 | 71.86 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.69 + 23.66 – 11.56
= 70.79
The cash conversion cycle of Warrior Met Coal Inc has shown fluctuation over the past eight quarters. The company's cash conversion cycle ranged from a low of 80.93 days in Q4 2023 to a high of 122.91 days in Q2 2022, indicating variability in the efficiency of converting investments in inventory and accounts receivable into cash.
Overall, Warrior Met Coal Inc has demonstrated a downward trend in the cash conversion cycle over the last two quarters, reflecting improvements in managing working capital and cash flow. However, compared to the same period in the previous year, the cash conversion cycle remains lower, indicating potential inefficiencies in managing inventory and accounts receivable in the earlier quarters.
It is essential for the company to continue evaluating and optimizing its working capital management practices to maintain a healthy cash conversion cycle and enhance its financial performance and liquidity position.
Peer comparison
Dec 31, 2023