RPC Inc (RES)
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 | 34.64 | 34.73 | 35.16 | 34.89 | 33.80 | 32.90 | 29.64 | 28.14 | 30.26 | 32.16 | 35.84 | 38.49 | 39.17 | 44.70 | 50.83 | 56.38 | 52.52 | 46.94 | 42.19 | 34.93 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 34.64 | 34.73 | 35.16 | 34.89 | 33.80 | 32.90 | 29.64 | 28.14 | 30.26 | 32.16 | 35.84 | 38.49 | 39.17 | 44.70 | 50.83 | 56.38 | 52.52 | 46.94 | 42.19 | 34.93 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.64 + — – —
= 34.64
The cash conversion cycle of RPC Inc has shown fluctuations over the years, indicating changes in its efficiency in managing cash flow. The trend demonstrates an initial increase from March 31, 2020, to December 31, 2020, reaching its peak at 52.52 days. This increase suggests a longer period required to convert resources into cash during that time frame.
However, starting from March 31, 2021, there was a reversal in the trend as the cash conversion cycle began to decrease. This decline continued until December 31, 2024, indicating an improvement in the company's cash conversion efficiency. The cycle reached its lowest point of 30.26 days on December 31, 2022, before slightly increasing to 34.64 days by December 31, 2024.
Overall, the downward trend in the cash conversion cycle from 2021 to 2024 signifies that RPC Inc was able to manage its cash flow more effectively, potentially enhancing its liquidity position and overall financial health during that period. This improvement may have been achieved through better inventory management, accounts receivable collection, and payment to suppliers strategies.
Peer comparison
Dec 31, 2024