Ovintiv Inc (OVV)

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 0.74 2.49
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 0.00 0.00 0.00 0.74 2.49

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Ovintiv Inc has shown a significant improvement over the years based on the data provided.

As of December 31, 2020, the company's cash conversion cycle was at 2.49 days, indicating that on average it took Ovintiv 2.49 days to convert its investments in inventory into cash inflows from sales.

By December 31, 2021, the cash conversion cycle had decreased to 0.74 days, reflecting a more efficient management of inventory and receivables, allowing the company to convert its resources into cash quicker.

Moreover, by the end of 2022, 2023, and 2024, the cash conversion cycle reached 0.00 days, which suggests that Ovintiv further optimized its operations to convert inventory into cash almost instantly, showcasing strong efficiency in managing working capital.

Overall, Ovintiv Inc's decreasing trend in the cash conversion cycle over the years indicates improved liquidity, better cash flow management, and potentially enhanced profitability as the company efficiently converts its resources into cash.