Helix Energy Solutions Group Inc (HLX)

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	—	—	—	1.03	1.11	1.24	1.34	39.19	40.75	56.86	42.47	38.39	—	—	23.65	29.75	32.17	—	—	—
Days of sales outstanding (DSO)	days	79.36	90.49	83.26	81.79	88.95	124.95	101.08	94.53	93.55	90.37	82.32	82.78	80.61	91.70	92.97	78.18	36.72	51.68	52.28	62.97
Number of days of payables	days	45.08	48.97	54.46	55.19	60.03	65.05	53.18	52.41	48.69	43.44	41.77	32.29	27.93	37.15	40.08	51.37	41.05	47.00	45.24	37.75
Cash conversion cycle	days	34.28	41.52	28.81	27.63	30.04	61.13	49.24	81.31	85.61	103.79	83.03	88.88	52.68	54.55	76.54	56.57	27.85	4.68	7.04	25.22

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 eight quarters. In Q4 2023, the company had a cash conversion cycle of 34.28 days, which was a decrease from the previous quarter's 41.52 days. This indicates that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently in Q4 2023.

Looking at the trend over the eight quarters, we observe that the cash conversion cycle was relatively stable in Q1 and Q2 of 2022, but then increased significantly in Q3 2022 to 59.90 days before gradually decreasing in the following quarters. The lowest point was reached in Q1 2023 with a cycle of 26.60 days.

Overall, the management of inventory levels, accounts receivable collection, and accounts payable payment by Helix Energy Solutions Group Inc has varied over the quarters, with some periods showing more efficient cash conversion cycles than others. It is important for the company to continue monitoring and improving its cash conversion cycle to ensure optimal working capital management and overall financial health.