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.