One Gas Inc (OGS)

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	57.98	53.49	36.43	23.96	66.44	249.41	165.93	84.48	4,786.19	395.20	232.49	157.93	2,956.06	117.29	91.00	56.62	84.84	55.56	34.86	18.09
Days of sales outstanding (DSO)	days	53.53	14.74	19.36	40.48	46.06	19.46	25.10	52.87	40.64	15.48	21.22	37.51	40.76	14.19	18.44	33.63	38.59	42.26	55.38	91.78
Number of days of payables	days	86.17	44.13	38.79	47.85	88.97	138.81	155.99	224.47	6,888.48	302.23	429.34	812.30	4,792.61	72.69	79.05	96.77	98.04	29.35	26.70	42.05
Cash conversion cycle	days	25.34	24.09	17.00	16.60	23.52	130.06	35.04	-87.12	-2,061.65	108.44	-175.63	-616.85	-1,795.78	58.79	30.39	-6.52	25.38	68.47	63.54	67.82

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.98 + 53.53 – 86.17
= 25.34

The cash conversion cycle of ONE Gas Inc has shown fluctuations over the past eight quarters. The cycle measures the time taken for the company to convert its investments in inventory and other resources into cash inflows from sales.

In Q4 2023, the company's cash conversion cycle was 49.25 days, showing an improvement from the previous quarter at 54.52 days. The reduction indicates that ONE Gas Inc was able to manage its working capital more efficiently during this period.

Looking back at Q3 2022, the company experienced a significant increase in the cash conversion cycle to 93.29 days, which was notably higher compared to the recent quarters. However, in subsequent quarters, the company was able to decrease this cycle, showing progress in managing its cash flow and working capital.

Overall, the trend in the cash conversion cycle of ONE Gas Inc has been inconsistent, with fluctuations observed across quarters. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure efficient working capital management and sustainable financial performance.