Kinder Morgan Inc (KMI)
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 | ||
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Days of inventory on hand (DOH) | days | 32.56 | 31.46 | 26.40 | 22.48 | 22.62 | 21.99 | 23.49 | 24.02 | 22.55 | 26.40 | 26.80 | 29.01 | 35.83 | 34.37 | 35.09 | 29.16 | 32.63 | 32.49 | 33.36 | 26.59 |
Days of sales outstanding (DSO) | days | 37.80 | 34.53 | 27.34 | 25.65 | 35.78 | 35.89 | 42.56 | 38.64 | 36.32 | 34.19 | 35.90 | 37.68 | 41.80 | 34.92 | 32.02 | 33.59 | 38.91 | 34.07 | 32.13 | 33.78 |
Number of days of payables | days | 84.71 | 79.61 | 52.98 | 41.49 | 51.51 | 48.57 | 57.57 | 48.93 | 50.52 | 68.68 | 64.22 | 72.19 | 86.18 | 83.93 | 72.90 | 71.42 | 80.39 | 73.48 | 66.73 | 62.73 |
Cash conversion cycle | days | -14.35 | -13.62 | 0.75 | 6.65 | 6.88 | 9.32 | 8.48 | 13.72 | 8.36 | -8.10 | -1.52 | -5.51 | -8.54 | -14.64 | -5.79 | -8.67 | -8.85 | -6.92 | -1.24 | -2.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.56 + 37.80 – 84.71
= -14.35
The cash conversion cycle of Kinder Morgan Inc has shown variability over the past eight quarters. The company's cash conversion cycle represents the time it takes to convert its investments in inventory and other resources into cash flow from sales.
In Q4 2023, the cash conversion cycle was -24.36 days, indicating that the company was able to convert its investments into cash before paying its liabilities, resulting in a negative cycle. This trend continued in Q3 2023 with a cash conversion cycle of -22.33 days.
In Q2 2023, the cash conversion cycle decreased significantly to -3.13 days, suggesting an improvement in efficiency in converting resources into cash. However, in Q1 2023, the cycle slightly increased to 4.46 days, indicating a longer period to convert investments into cash.
Looking at the previous quarters, Kinder Morgan Inc demonstrated a generally efficient cash conversion cycle with positive signs. In Q4 2022, the company had a cash conversion cycle of 3.03 days, followed by 1.92 days in Q3 2022 and -2.41 days in Q2 2022. In Q1 2022, the cycle increased to 3.55 days.
Overall, Kinder Morgan Inc has shown variability in its cash conversion cycle in recent quarters, with negative cycles in Q4 2023 and Q3 2023, indicating efficient cash flow management. However, the company experienced a longer cycle in Q1 2023 compared to previous quarters. Monitoring and managing the cash conversion cycle is crucial for Kinder Morgan Inc to ensure effective working capital management and optimize cash flow operations.
Peer comparison
Dec 31, 2023