Hess Corporation (HES)
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 | 32.20 | 23.52 | 20.93 | 24.13 | 22.14 | 31.25 | 26.68 | 23.09 | 23.23 | 31.42 | 38.41 | 30.15 | 27.79 | 31.91 | 28.08 | 24.92 | 40.39 | 42.93 | 11.33 | 23.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 32.20 | 23.52 | 20.93 | 24.13 | 22.14 | 31.25 | 26.68 | 23.09 | 23.23 | 31.42 | 38.41 | 30.15 | 27.79 | 31.91 | 28.08 | 24.92 | 40.39 | 42.93 | 11.33 | 23.03 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.20 + — – —
= 32.20
The cash conversion cycle for Hess Corporation has shown fluctuations over the reported periods. In general, the cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is typically more favorable as it indicates that the company is able to efficiently manage its working capital and generate cash.
Looking at the data provided, we observed the following trends in Hess Corporation's cash conversion cycle:
- The cycle started at 23.03 days on March 31, 2020, decreased to 11.33 days by June 30, 2020, but then increased significantly to 42.93 days by September 30, 2020.
- Subsequently, there were fluctuations in the cycle over the following quarters, with values ranging from 20 to 40 days until December 31, 2021.
- The cycle decreased to 22.14 days by December 31, 2023, and then saw a slight increase by June 30, 2024, before decreasing to 32.20 days by December 31, 2024.
Overall, Hess Corporation's cash conversion cycle has shown variability, indicating potential shifts in its inventory management, sales policies, and accounts receivable collection efficiency. The company may need to focus on maintaining a balance between these elements to optimize its cash conversion cycle and improve its overall liquidity position.
Peer comparison
Dec 31, 2024