RPC Inc (RES)
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 | 37.90 | 33.80 | 30.26 | 39.17 | 52.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 37.90 | 33.80 | 30.26 | 39.17 | 52.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.90 + — – —
= 37.90
The cash conversion cycle for RPC Inc has exhibited a declining trend over the past five years. At the end of December 31, 2020, the cash conversion cycle stood at 52.52 days, indicating that it took the company approximately 53 days to convert its investments in inventory and accounts receivable into cash.
By the end of December 31, 2021, the cash conversion cycle had decreased to 39.17 days, showcasing an improvement in the company's efficiency in managing its working capital. This trend continued in the following years, with the cash conversion cycle further decreasing to 30.26 days by December 31, 2022.
However, there was a slight uptick in the cash conversion cycle by the end of December 31, 2023, as it rose to 33.80 days. This could suggest a temporary delay in the company's ability to convert its assets into cash efficiently.
By the end of December 31, 2024, the cash conversion cycle increased slightly to 37.90 days, indicating a lengthening of the time taken to convert working capital investments into cash compared to the previous year.
Overall, although there have been fluctuations in the cash conversion cycle over the years, RPC Inc has generally shown an improvement in managing its working capital efficiently, as evidenced by the downward trend in the cycle duration. Continued monitoring and analysis of the cash conversion cycle will be essential for assessing the company's liquidity and operational performance.
Peer comparison
Dec 31, 2024