Viper Energy Ut (VNOM)
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 | — | 0.66 | 60.40 | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.66 | 60.40 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Viper Energy Ut has shown fluctuations over the years. In 2020 and 2021, the company managed to achieve a cash conversion cycle of 0.00 days, indicating an efficient management of cash flow, inventory, and accounts receivable.
However, in 2022, there was a significant increase in the cash conversion cycle to 60.40 days. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during that period.
The following year, in 2023, the cash conversion cycle decreased substantially to 0.66 days, showing an improvement in the efficiency of converting its resources into cash.
Finally, in 2024, the company returned to a cash conversion cycle of 0.00 days, reflecting a similar efficiency as in the earlier years.
Overall, Viper Energy Ut's cash conversion cycle has experienced variations, with more recent years showing improvements in the speed at which the company is able to convert its assets into cash. It is essential for the company to continue managing its cash conversion cycle effectively to ensure optimal financial performance and liquidity.
Peer comparison
Dec 31, 2024