Newmont Goldcorp Corp (NEM)
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 | 6.28 | 6.40 | 6.46 | 5.72 | 5.30 | 6.57 | 6.42 | 7.81 | 7.42 | 9.57 | 9.49 | 8.96 | 12.68 | 18.68 | 36.04 | 82.40 | 105.00 | 114.17 | 64.36 | 45.67 |
| Days of sales outstanding (DSO) | days | 38.49 | 2.61 | 6.12 | 11.09 | 11.31 | 8.76 | 10.79 | 12.26 | 10.11 | 10.05 | 10.06 | 8.27 | 14.52 | 10.75 | 8.81 | 7.64 | 13.97 | 31.44 | 30.22 | 14.52 |
| Number of days of payables | days | 37.68 | 28.51 | 24.49 | 27.68 | 27.28 | 28.57 | 29.95 | 26.82 | 29.12 | 31.15 | 32.04 | 29.59 | 42.25 | 53.10 | 104.57 | 295.37 | 299.44 | 314.72 | 183.90 | 113.99 |
| Cash conversion cycle | days | 7.09 | -19.51 | -11.91 | -10.86 | -10.66 | -13.25 | -12.74 | -6.76 | -11.60 | -11.53 | -12.49 | -12.36 | -15.05 | -23.68 | -59.72 | -205.33 | -180.47 | -169.11 | -89.32 | -53.80 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.28 + 38.49 – 37.68
= 7.09
The cash conversion cycle of Newmont Corp has exhibited variability over the past eight quarters, ranging from a low of 30.71 days in Q3 2023 to a high of 76.22 days in Q4 2023. Generally, a lower cash conversion cycle indicates that the company is able to convert its inventory and receivables into cash more efficiently.
In Q4 2023, the cash conversion cycle increased significantly to 76.22 days, indicating a potential slowdown in the company's ability to convert its assets into cash. This could be a cause for concern as it suggests that Newmont Corp may be facing challenges in managing its inventory, collecting receivables, or paying its own payables promptly.
Conversely, in Q3 2023, the cash conversion cycle decreased to 30.71 days, reflecting a more efficient conversion of assets into cash. This could be a positive indicator of improved working capital management and liquidity for the company during that period.
Overall, monitoring the trend of the cash conversion cycle for Newmont Corp can provide valuable insights into its operational efficiency, financial health, and liquidity management over time. fluctuations in the cash conversion cycle may warrant further investigation into the company's working capital management practices and overall financial performance.
See also:
Newmont Goldcorp Corp Cash Conversion Cycle (Quarterly Data)