Northwest Natural Gas Co (NWN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.24 | 54.20 | 46.29 | 41.95 | 46.16 | 41.17 | 30.28 | 19.46 | 45.67 | 57.23 | 39.17 | 21.35 | 39.34 | 44.14 | 29.17 | 19.91 | 32.93 | 34.57 | 33.87 | 27.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 84.24 | 54.20 | 46.29 | 41.95 | 46.16 | 41.17 | 30.28 | 19.46 | 45.67 | 57.23 | 39.17 | 21.35 | 39.34 | 44.14 | 29.17 | 19.91 | 32.93 | 34.57 | 33.87 | 27.07 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.24 + — – —
= 84.24
The cash conversion cycle (CCC) of Northwest Natural Gas Co has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC indicates faster turnover of resources and better liquidity management.
From March 31, 2020, to March 31, 2021, the company managed to reduce its CCC significantly from 27.07 days to 19.91 days, indicating improved efficiency in managing its working capital.
However, from June 30, 2021, to December 31, 2024, there was an upward trend in the CCC, with the cycle increasing to 84.24 days by December 31, 2024. This suggests potential issues in managing cash flow and working capital efficiency in the later period.
Overall, fluctuations in the CCC can be influenced by various factors such as inventory management, accounts receivable, and accounts payable. It is important for Northwest Natural Gas Co to closely monitor and analyze these factors to improve working capital management and maintain a healthy cash conversion cycle.
Peer comparison
Dec 31, 2024