Range Resources Corp (RRC)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	241.42	96.73	89.09	71.90	—	—	12.79	1.33	—	12.01	5.22	5.16	4.91	0.59	2.48	32.94	2.21	3.31	3.39	2.88
Days of sales outstanding (DSO)	days	29.71	19.52	15.02	18.14	42.34	56.70	67.82	60.67	58.77	68.21	55.82	55.01	46.84	33.76	26.86	24.76	35.23	27.61	30.31	39.60
Number of days of payables	days	73.96	73.76	70.44	87.46	99.44	112.97	119.57	142.96	113.70	107.09	54.67	60.87	48.45	9.48	12.81	20.90	19.65	20.88	24.51	24.68
Cash conversion cycle	days	197.17	42.49	33.66	2.57	-57.10	-56.27	-38.96	-80.97	-54.94	-26.87	6.37	-0.71	3.29	24.86	16.53	36.80	17.79	10.04	9.19	17.80

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 241.42 + 29.71 – 73.96
= 197.17

The cash conversion cycle of Range Resources Corp has shown variability over the past eight quarters. In the most recent quarter, Q4 2023, the company's cash conversion cycle was 30.58 days, indicating that on average, it takes about 30.58 days for Range Resources Corp to convert its investments in inventory and other resources into cash receipts from customers.

Compared to the previous quarter, Q3 2023, there was an increase in the cash conversion cycle from 19.52 days to 30.58 days, suggesting that the company may have experienced challenges in efficiently managing its cash flows and working capital during this period.

Looking back over the past year, Range Resources Corp has been able to improve its cash conversion cycle from a high of 67.82 days in Q2 2022 to a low of 15.02 days in Q2 2023. This trend indicates the company's efforts in optimizing its operations to enhance liquidity and cash flow efficiency.

However, the variability in the cash conversion cycle over the quarters highlights potential fluctuations in Range Resources Corp's working capital management and operational efficiency. It is essential for the company to continue monitoring and improving its cash conversion cycle to ensure sustainable financial health and operational effectiveness.