Northwest Natural Gas Co (NWN)
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 | 51.68 | 53.11 | 45.67 | 39.34 | 32.93 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 51.68 | 53.11 | 45.67 | 39.34 | 32.93 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.68 + — – —
= 51.68
The cash conversion cycle of Northwest Natural Gas Co has shown an increasing trend over the years, indicating a lengthening period of time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From December 31, 2020, where the cash conversion cycle was 32.93 days, it has steadily risen to 51.68 days by December 31, 2024. This suggests that the company may be experiencing challenges in efficiently managing its working capital, as a longer cash conversion cycle can tie up cash and potentially strain liquidity.
It would be advisable for Northwest Natural Gas Co to review and optimize its inventory management, accounts receivable collection policies, and accounts payable terms to potentially shorten the cash conversion cycle and improve its overall liquidity position.
Peer comparison
Dec 31, 2024