Liberty Oilfield Services Inc (LBRT)

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	20.93	23.47	20.65	45.55	18.69
Days of sales outstanding (DSO)	days	14.52	51.55	60.19	127.99	46.38
Number of days of payables	days	29.87	35.77	44.31	74.27	24.83
Cash conversion cycle	days	5.59	39.25	36.53	99.27	40.24

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.93 + 14.52 – 29.87
= 5.59

The cash conversion cycle of Liberty Energy Inc has shown varying trends over the past five years. In 2023, the company's cash conversion cycle decreased to 21.06 days compared to 23.07 days in 2022 and 19.08 days in 2021, indicating that the company took less time to convert its investments in inventory to cash during the year.

However, there was a significant increase in the cash conversion cycle in 2020, reaching 60.57 days, which could suggest potential difficulties in managing inventory levels, collecting receivables, or paying suppliers efficiently during that period.

In 2019, the company had a cash conversion cycle of 32.71 days, indicating an improvement from 2020 but still higher compared to recent years. Overall, the trend in the cash conversion cycle for Liberty Energy Inc has been somewhat inconsistent in the past five years, with fluctuations in operating efficiency and liquidity management.