Range Resources Corp (RRC)
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 | — | 240.09 | — | — | — |
| Days of sales outstanding (DSO) | days | 45.64 | 29.71 | 42.34 | 58.77 | 46.84 |
| Number of days of payables | days | 129.56 | 73.55 | 98.96 | 113.96 | 48.29 |
| Cash conversion cycle | days | -83.93 | 196.24 | -56.62 | -55.20 | -1.45 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 45.64 – 129.56
= -83.93
Range Resources Corp's cash conversion cycle has displayed significant fluctuations over the years. The cycle was negative in 2020, 2021, and 2022, indicating that the company was able to convert its inventory into cash quickly and efficiently during these years. However, the cycle turned sharply positive in 2023, reaching 196.24 days, suggesting a significant delay between the company's cash outflows and inflows. This increase could indicate challenges in managing inventory, collecting receivables, or managing payables effectively.
The cash conversion cycle improved in 2024, becoming negative again at -83.93 days, which may suggest the company successfully streamlined its operational processes to convert inventory into cash more efficiently.
Overall, Range Resources Corp's cash conversion cycle has demonstrated volatility, with both positive and negative cycles observed. Investors and stakeholders may need to closely monitor the company's working capital management practices and operational efficiency to ensure sustainable cash flow generation.
Peer comparison
Dec 31, 2024