Range Resources Corp (RRC)

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 — 17.81 — — 241.42 96.73 89.09 71.90 — — — 1.33 — 12.01 5.22 5.16 — 0.59 2.48 32.94
Days of sales outstanding (DSO) days 45.64 24.20 27.54 21.54 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
Number of days of payables days 130.88 91.72 108.76 110.12 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
Cash conversion cycle days -85.24 -49.71 -81.22 -88.58 197.17 42.49 33.66 2.57 -57.10 -56.27 -51.75 -80.97 -54.94 -26.87 6.37 -0.71 -1.61 24.86 16.53 36.80

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 45.64 – 130.88
= -85.24

The cash conversion cycle provides insights into how efficiently Range Resources Corp manages its cash flows related to its operating cycle. Looking at the historical trend of the cash conversion cycle from March 31, 2020, to December 31, 2024, the company has experienced fluctuations and improvements in its cash conversion efficiency.

Initially, the company had a positive cash conversion cycle, indicating that it took a relatively long time to convert its investments in inventory and accounts receivable into cash. However, from December 31, 2020, to December 31, 2024, Range Resources Corp significantly improved its cash conversion cycle, moving into negative days.

The negative days in the cash conversion cycle suggest that the company is efficiently managing its working capital, indicating quick conversion of inventory and receivables into cash. This improvement reflects effective inventory management and collection of receivables, leading to a shorter cycle period and faster cash turnover for the company.

Moreover, the positive cash conversion cycle observed in the most recent period ending December 31, 2023, at 197.17 days, may raise concerns about potential liquidity challenges or operating inefficiencies during that quarter.

Overall, Range Resources Corp's improving trend in the cash conversion cycle indicates enhanced operational efficiency and working capital management, which can positively impact the company's cash flow and financial performance.