Permian Resources Corporation (PR)

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 51.49
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 0.00 0.00 51.49 0.00 0.00

December 31, 2024 calculation

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

Permian Resources Corporation's cash conversion cycle has shown fluctuations over the years. In 2020, the company had a zero-day cash conversion cycle, indicating that it effectively managed its working capital and efficiently converted its inventory and receivables into cash. However, in 2022, the cash conversion cycle increased significantly to 51.49 days, indicating a potential slowdown in the company's ability to convert its resources into cash.

Despite the spike in 2022, the company managed to bring its cash conversion cycle back to zero days in 2021, 2023, and 2024. This suggests that Permian Resources Corporation successfully addressed the issues impacting its cash conversion cycle in 2022, demonstrating improved efficiency in managing its working capital.

Overall, Permian Resources Corporation should continue to monitor and actively manage its cash conversion cycle to ensure optimal use of its resources and maintain a healthy financial position.