One Gas Inc (OGS)
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 | 70.30 | 76.29 | 68.54 | 59.03 | 70.03 | 58.27 | 41.34 | 31.89 | 64.27 | 86.51 | 57.54 | 31.25 | 69.90 | 71.63 | 45.99 | 32.79 | 55.29 | 61.98 | 48.37 | 37.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 70.30 | 76.29 | 68.54 | 59.03 | 70.03 | 58.27 | 41.34 | 31.89 | 64.27 | 86.51 | 57.54 | 31.25 | 69.90 | 71.63 | 45.99 | 32.79 | 55.29 | 61.98 | 48.37 | 37.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.30 + — – —
= 70.30
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For One Gas Inc, based on the provided data, we observe fluctuations in the cash conversion cycle over the different quarters.
From March 31, 2020, to September 30, 2021, the trend in the cash conversion cycle was generally increasing, indicating it took longer for One Gas Inc to convert its investments to cash. This could suggest possible inefficiencies in managing inventory or collecting receivables during this period.
However, from March 31, 2022, to December 31, 2024, we see fluctuations with both increases and decreases in the cash conversion cycle. The cycle decreased significantly by the end of March 31, 2024, which might indicate improvements in inventory management or faster collection of receivables.
Overall, analyzing the cash conversion cycle for One Gas Inc can provide insights into the company's working capital management efficiency, operational effectiveness, and cash flow performance. Monitoring this ratio over time is crucial to understanding how efficiently the company is managing its working capital to generate cash flows.
Peer comparison
Dec 31, 2024