Northern Oil & Gas Inc (NOG)
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 | — | — | 62.11 | 71.10 | 28.95 | — | — | — | 9.44 | 4.27 | 0.56 | 0.65 | 13.86 | 33.31 | 50.77 | 242.51 | 6.63 | 181.67 | 107.99 | 68.98 |
| Days of sales outstanding (DSO) | days | 62.98 | 76.12 | 43.64 | 45.82 | 48.14 | 57.81 | 97.67 | 116.61 | 142.18 | 253.25 | 333.40 | 248.12 | 41.48 | 34.59 | 19.50 | 36.27 | 64.70 | 36.97 | 36.06 | 43.36 |
| Number of days of payables | days | 80.05 | 138.31 | 92.94 | 84.37 | 84.09 | 123.62 | 131.89 | 100.64 | 69.95 | 54.80 | 29.03 | 10.93 | 9.59 | 5.65 | 16.15 | 57.59 | 70.57 | 307.59 | 296.90 | 571.78 |
| Cash conversion cycle | days | -17.07 | -62.20 | 12.81 | 32.55 | -7.00 | -65.81 | -34.23 | 15.97 | 81.67 | 202.72 | 304.93 | 237.85 | 45.76 | 62.26 | 54.12 | 221.19 | 0.76 | -88.95 | -152.85 | -459.44 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 62.98 – 80.05
= -17.07
The cash conversion cycle measures how efficiently a company manages its working capital by assessing how long it takes for the company to convert its resources (inventory and accounts receivable) into cash.
Based on the data provided for Northern Oil and Gas Inc., the cash conversion cycle has fluctuated over the past eight quarters, ranging from 43.64 days to 245.57 days. A lower number indicates more efficient management of working capital, while a higher number suggests potential liquidity issues or inefficiencies in the company's operations.
In Q4 2023, the cash conversion cycle was 62.98 days, a decrease from the previous quarter. This indicates that Northern Oil and Gas Inc. was able to convert its resources into cash more efficiently during this period.
In contrast, in Q1 2022, the cash conversion cycle was significantly high at 245.57 days, indicating potential challenges in managing working capital effectively. However, it improved gradually over the following quarters.
Overall, it is essential for Northern Oil and Gas Inc. to continue monitoring and improving its cash conversion cycle to ensure optimal working capital management and overall financial health.
Peer comparison
Dec 31, 2023