One Gas Inc (OGS)
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 | 70.53 | 58.82 | 64.27 | 69.90 | 55.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 70.53 | 58.82 | 64.27 | 69.90 | 55.29 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.53 + — – —
= 70.53
The cash conversion cycle of One Gas Inc has been fluctuating over the past five years. Starting at 55.29 days on December 31, 2020, it increased to 69.90 days on December 31, 2021, indicating a lengthening of the time it takes to convert investments in raw materials into cash receipts from sales.
However, the cycle decreased to 64.27 days on December 31, 2022, before dropping further to 58.82 days on December 31, 2023, suggesting an improvement in the efficiency of the company's working capital management.
Nevertheless, the cycle increased again to 70.53 days on December 31, 2024. This increase may indicate delays in collecting receivables or an extended timeline for converting inventory and payables into cash. It is essential for One Gas Inc to closely monitor and manage its cash conversion cycle to optimize its working capital efficiency and enhance liquidity.
Peer comparison
Dec 31, 2024