Marathon Oil Corporation (MRO)

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
Days of inventory on hand (DOH)	days	208.89	193.63	147.30	148.62	147.18	84.86	75.43	56.94	53.23	31.79	33.07	34.43	27.22	49.83	48.12	46.98	40.00	16.07	15.93	16.02
Days of sales outstanding (DSO)	days	62.79	77.67	65.85	55.69	52.05	61.17	75.51	85.66	76.24	86.68	96.87	114.85	88.35	67.62	55.71	55.14	78.91	75.67	71.41	68.10
Number of days of payables	days	1,531.88	1,760.46	1,664.70	1,617.37	1,505.92	1,219.41	1,235.32	948.27	767.33	424.46	397.22	405.16	299.81	472.43	435.00	664.95	726.11	310.92	309.92	252.86
Cash conversion cycle	days	-1,260.20	-1,489.16	-1,451.56	-1,413.05	-1,306.69	-1,073.38	-1,084.38	-805.67	-637.86	-305.98	-267.28	-255.89	-184.23	-354.98	-331.16	-562.83	-607.20	-219.18	-222.58	-168.74

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 208.89 + 62.79 – 1,531.88
= -1,260.20

The cash conversion cycle of Marathon Oil Corporation has shown a fluctuating trend over the past eight quarters. The company has reported negative values for the cash conversion cycle, implying that it takes less time for Marathon Oil Corporation to convert its investments in raw materials into cash receipts from sales.

The cycle time has ranged from -453.66 days to -691.16 days over the specified period, indicating efficient management of working capital. A negative cash conversion cycle suggests that Marathon Oil Corporation is able to generate cash inflows from its operational activities before having to pay suppliers for raw materials, thus enhancing liquidity and operational efficiency.

Overall, Marathon Oil Corporation has managed its cash conversion cycle effectively, consistently maintaining a negative cycle and demonstrating efficient operations in converting resources into cash.