MDU Resources Group Inc (MDU)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.65 | 8.94 | 6.86 | 5.66 | 7.62 | 6.13 | 3.94 | 25.37 | 24.27 | 26.55 | 28.59 | 28.73 | 26.42 | 25.02 | 25.41 | 25.78 | 23.69 | 23.21 | 24.55 | 24.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 5.65 | 8.94 | 6.86 | 5.66 | 7.62 | 6.13 | 3.94 | 25.37 | 24.27 | 26.55 | 28.59 | 28.73 | 26.42 | 25.02 | 25.41 | 25.78 | 23.69 | 23.21 | 24.55 | 24.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.65 + — – —
= 5.65
Based on the data provided, the cash conversion cycle of MDU Resources Group Inc has fluctuated over the past few years. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
From March 31, 2020, to September 30, 2022, the cash conversion cycle remained relatively stable, ranging from around 23 to 28 days. However, there was a significant decrease in the cycle for the June 30, 2023, quarter, dropping to just 3.94 days. This sharp decline suggests that MDU Resources Group Inc improved its efficiency in managing its working capital during that period.
The following quarters showed fluctuations in the cash conversion cycle, with varying levels of days required to convert investments into cash. Notably, the cycle increased gradually towards the end of 2024, reaching 5.65 days on December 31, 2024.
Overall, a lower cash conversion cycle indicates a more efficient use of working capital and quicker conversion of resources into cash. MDU Resources Group Inc's cash conversion cycle showed some variability, highlighting the company's ability to manage its working capital effectively over the analyzed period.
Peer comparison
Dec 31, 2024