Hess Corporation (HES)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	56.21	49.05	23.23	27.79	40.39
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	56.21	49.05	23.23	27.79	40.39

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.21 + — – —
= 56.21

Based on the data provided, the cash conversion cycle of Hess Corporation has shown some fluctuations over the years.

As of December 31, 2020, the cash conversion cycle was 40.39 days, indicating that it took the company an average of 40.39 days to convert its investments in inventory and receivables into cash.

By December 31, 2021, the cash conversion cycle improved to 27.79 days, suggesting that the company managed to shorten the time it takes to convert its assets into cash.

In the following year, by December 31, 2022, the cash conversion cycle decreased further to 23.23 days, indicating an even more efficient cash conversion process.

However, by December 31, 2023, the cash conversion cycle increased to 49.05 days, which could be a sign of potential issues in managing inventory or collecting receivables efficiently.

By the most recent year, December 31, 2024, the cash conversion cycle rose to 56.21 days, indicating a further delay in converting assets into cash.

In conclusion, while there have been fluctuations in the cash conversion cycle of Hess Corporation, it is essential for the company to closely monitor and manage this metric to ensure efficient use of its working capital.