Northern Oil & Gas Inc (NOG)
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 | — | — | 24.11 | 8.30 | 61.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 24.11 | 8.30 | 61.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle for Northern Oil & Gas Inc has shown a significant improvement over the years. As of December 31, 2020, the company's cash conversion cycle was 61.30 days, indicating that it took approximately two months to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle had reduced drastically to 8.30 days, signifying a much faster conversion of investments into cash. This rapid improvement suggests efficiency in managing inventory, receivables, and payables.
In 2022, the cash conversion cycle increased to 24.11 days, which is still lower compared to the initial period. This indicates a slight slowdown in the company's cash conversion efficiency but remains at a relatively favorable level.
Remarkably, by December 31, 2023, and December 31, 2024, the cash conversion cycle reached 0.00 days, implying that Northern Oil & Gas Inc was able to convert its investments into cash instantaneously. This could indicate a streamlined and highly efficient cash management system, allowing the company to quickly realize cash inflows from its operations.
Overall, the trend in Northern Oil & Gas Inc's cash conversion cycle shows a positive trajectory, reflecting improved efficiency in managing working capital and generating cash flows from its operational activities.
Peer comparison
Dec 31, 2024