Helix Energy Solutions Group Inc (HLX)

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	—	1.11	40.75	—	32.17
Days of sales outstanding (DSO)	days	79.36	88.95	93.55	80.61	36.72
Number of days of payables	days	45.08	60.03	48.69	27.93	41.05
Cash conversion cycle	days	34.28	30.04	85.61	52.68	27.85

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 79.36 – 45.08
= 34.28

The cash conversion cycle of Helix Energy Solutions Group Inc has shown fluctuations over the past five years. As of December 31, 2023, the cash conversion cycle stood at 34.28 days, representing the number of days it takes for the company to convert its investments in inventory and other resources into cash received from sales.

Comparing this figure to the trend over the previous years, we observe a slight increase from the prior year-end 2022 figure of 28.92 days. This indicates a potential slowdown in the company's ability to efficiently manage its working capital and convert its assets into cash.

Looking further back, we see that the cash conversion cycle was notably higher at the end of 2020 and 2021, indicating potential inefficiencies in managing inventory, receivables, and payables during those periods. However, there was a significant improvement in 2019 with a cash conversion cycle of 19.85 days, suggesting a more effective cash management approach.

Overall, the fluctuating trend in Helix Energy Solutions Group Inc's cash conversion cycle implies varying levels of operational efficiency and liquidity management over the years, highlighting the importance of closely monitoring and optimizing working capital processes to support sustainable growth and financial performance.