Permian Resources Corporation (PR)

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	—	4.09	108.26	155.25	152.80	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	56.44	49.83	41.47	43.20	48.71	49.44	43.24	52.72	31.29	60.82	65.43	47.16	33.72	25.87	28.87	26.83	41.99	59.90	51.32	48.37
Number of days of payables	days	116.73	155.70	126.52	195.24	77.98	278.55	117.26	118.37	28.08	52.00	39.86	39.19	2.41	5.11	4.42	26.13	49.63	102.15	134.40	115.67
Cash conversion cycle	days	-60.29	-101.78	23.22	3.21	123.53	-229.11	-74.02	-65.64	3.21	8.83	25.56	7.96	31.31	20.76	24.45	0.71	-7.64	-42.25	-83.08	-67.29

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 56.44 – 116.73
= -60.29

Permian Resources Corp's cash conversion cycle has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle increased to 56.26 days, indicating a longer period for the company to convert its investments in raw materials into cash inflows from sales. This was higher than the previous quarter's figure of 44.90 days, suggesting a potential slowdown in the company's operating efficiency.

Looking further back, Q2 2022 had the lowest cash conversion cycle at 36.27 days, indicating that the company was more efficient in managing its working capital and converting its inventory and receivables into cash. However, subsequent quarters saw an upward trend in the cash conversion cycle, with Q1 2023 at 45.86 days and Q4 2022 at 48.44 days.

Overall, Permian Resources Corp's cash conversion cycle has shown variability, with some quarters demonstrating improved efficiency while others indicating potential challenges in working capital management. It would be essential for the company to closely monitor and analyze the factors driving these fluctuations to optimize its cash conversion cycle and ensure smooth operations and cash flow management in the future.