Patterson-UTI Energy Inc (PTEN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 108.69 | 115.13 | 137.64 | 170.45 | 209.39 | 291.44 | 183.43 | 197.15 | 198.93 | 133.70 | 131.99 | 110.85 | 106.46 | 110.62 | 105.50 | 106.04 | 23.07 | 23.33 | 22.93 | 22.01 |
| Days of sales outstanding (DSO) | days | 53.52 | 56.57 | 60.41 | 67.43 | 87.85 | 113.58 | 60.26 | 62.08 | 79.14 | 87.53 | 90.43 | 87.24 | 99.10 | 88.90 | 77.25 | 74.52 | 55.03 | 36.44 | 34.86 | 55.12 |
| Number of days of payables | days | 274.18 | 328.81 | 380.40 | 507.01 | 618.92 | 905.85 | 662.04 | 819.84 | 721.31 | 638.67 | 623.09 | 506.02 | 478.07 | 525.09 | 377.63 | 312.13 | 63.48 | 51.49 | 47.82 | 90.32 |
| Cash conversion cycle | days | -111.97 | -157.10 | -182.35 | -269.13 | -321.67 | -500.83 | -418.35 | -560.60 | -443.24 | -417.44 | -400.67 | -307.93 | -272.51 | -325.57 | -194.88 | -131.57 | 14.63 | 8.27 | 9.97 | -13.20 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.69 + 53.52 – 274.18
= -111.97
The cash conversion cycle of Patterson-UTI Energy Inc has shown significant fluctuations over the years, ranging from negative to positive values. A negative cash conversion cycle indicates efficient management of working capital, as the company is able to collect cash from customers before paying its suppliers and vendors.
From March 31, 2020, to December 31, 2024, there has been a trend of decreasing cash conversion cycle days, indicating improvements in the company's liquidity position and operational efficiency. Notably, as of December 31, 2024, the company achieved a cash conversion cycle of -111.97 days, reflecting a strong financial position.
Overall, the negative values in the cash conversion cycle of Patterson-UTI Energy Inc suggest effective working capital management, quicker cash inflows than outflows, and potential for increased profitability due to reduced working capital requirements. This trend bodes well for the company's financial health and operational performance.
Peer comparison
Dec 31, 2024