Range Resources Corp (RRC)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	240.09	—	—	—	2.21
Days of sales outstanding (DSO)	days	29.71	42.34	58.77	46.84	35.23
Number of days of payables	days	73.55	98.96	113.96	48.29	19.57
Cash conversion cycle	days	196.25	-56.62	-55.20	-1.45	17.86

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 240.09 + 29.71 – 73.55
= 196.25

Range Resources Corp's cash conversion cycle has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased significantly to 30.58 days from 44.50 days in 2022. This suggests that Range Resources Corp is managing its working capital more efficiently, converting its inventory and accounts receivable into cash at a faster rate.

Comparing to 2021 when the cash conversion cycle stood at 62.44 days, the current cycle in 2023 reflects a substantial improvement. It indicates that the company may have streamlined its operations, reduced the inventory holding period, and accelerated the collection of accounts receivable.

However, in 2020, the cash conversion cycle was slightly lower at 46.84 days compared to 2023. This indicates that Range Resources Corp may have experienced challenges in managing its working capital efficiently in that period.

Overall, the trend in Range Resources Corp's cash conversion cycle shows varying levels of efficiency in managing working capital over the past five years, with the most recent data suggesting an improvement in converting its resources into cash.