ONEOK Inc (OKE)
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 | 20.51 | 19.55 | 8.80 | 12.74 | 16.27 |
| Days of sales outstanding (DSO) | days | 38.72 | 37.02 | 24.98 | 31.82 | 35.46 |
| Number of days of payables | days | 59.97 | 47.85 | 27.70 | 39.68 | 51.38 |
| Cash conversion cycle | days | -0.74 | 8.72 | 6.09 | 4.88 | 0.35 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.51 + 38.72 – 59.97
= -0.74
The cash conversion cycle of ONEOK Inc has fluctuated over the past few years. As of December 31, 2020, the company had a low cash conversion cycle of 0.35 days, indicating a quick turnover of cash. However, this metric increased significantly to 4.88 days by December 31, 2021, and continued to rise to 6.09 days by December 31, 2022. The cycle further extended to 8.72 days by December 31, 2023, reflecting a slower conversion of inventory and receivables to cash.
Surprisingly, by December 31, 2024, ONEOK Inc's cash conversion cycle turned negative at -0.74 days, which could suggest efficient management of working capital and a potential improvement in liquidity. Overall, fluctuations in the cash conversion cycle can indicate changes in the company's efficiency in managing its operating cycle and working capital.
Peer comparison
Dec 31, 2024