Knife River Corporation (KNF)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 59.60 50.91 53.94 56.52
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 59.60 50.91 53.94 56.52 0.00

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.60 + — – —
= 59.60

The cash conversion cycle for Knife River Corporation has shown fluctuations over the years. In 2020, the company had a cash conversion cycle of 0.00 days, indicating that it effectively managed its cash flows and efficiently converted its investments into cash, potentially through quick collection of receivables and management of payables.

However, in 2021, the cash conversion cycle increased to 56.52 days, suggesting a slower conversion of inventory and receivables into cash, which could indicate potential issues with inventory management or delayed collections from customers.

In 2022 and 2023, the company was able to improve its cash conversion cycle to 53.94 days and 50.91 days, respectively, indicating better working capital management and increased efficiency in converting investments into cash.

By the end of 2024, the cash conversion cycle increased to 59.60 days, which may signal a need for the company to review its working capital processes and assess areas for improvement to expedite cash flows and enhance overall financial performance. Keeping a close eye on working capital efficiency will be crucial for Knife River Corporation to maintain or improve its financial health in the future.


Peer comparison

Dec 31, 2024