MDU Resources Group Inc (MDU)
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 | 13.83 | 7.90 | 24.27 | 26.42 | 23.69 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 13.83 | 7.90 | 24.27 | 26.42 | 23.69 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 13.83 + — – —
= 13.83
The cash conversion cycle for MDU Resources Group Inc has fluctuated over the years, indicating varying efficiency in managing its working capital. In 2020, the company had a cash conversion cycle of 23.69 days, which increased to 26.42 days in 2021 before improving to 24.27 days in 2022. This suggests that MDU Resources took longer to convert its investments in inventory into cash during these years.
However, in 2023, there was a significant improvement as the cash conversion cycle reduced sharply to 7.90 days, reflecting better management of receivables, inventory, and payables. The following year, in 2024, while there was an increase to 13.83 days, the company maintained a lower cycle compared to the earlier years.
Overall, MDU Resources Group Inc's cash conversion cycle trended positively from 2020 to 2024, with a notable improvement in 2023. The company demonstrated enhanced efficiency in converting its working capital into cash, which is crucial for its financial performance and liquidity management.
Peer comparison
Dec 31, 2024