Viper Energy Ut (VNOM)

Cash conversion cycle

		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	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	0.83	—	—	3.70	26.26	13.55	3.05	—	—	—	—	—	—	—	—	2.98	—
Days of sales outstanding (DSO)	days	—	—	—	0.36	—	—	36.36	34.40	41.50	60.80	58.95	49.57	41.41	43.76	56.72	46.91	43.89	42.50	43.93	71.08
Number of days of payables	days	—	—	—	—	—	—	1.19	3.18	0.05	0.03	0.05	0.23	0.42	0.08	0.04	0.09	0.32	0.04	1.24	—
Cash conversion cycle	days	0.00	0.00	0.00	1.19	0.00	0.00	38.87	57.48	55.00	63.83	58.91	49.34	40.99	43.68	56.68	46.82	43.57	42.46	45.67	71.08

September 30, 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 past several quarters. The cycle represents the time it takes for the company to convert its investments in inventory into cash flows from sales.

During the most recent quarter, ending on September 30, 2024, Viper Energy Ut had a cash conversion cycle of 0.00 days, indicating an efficient management of its working capital and quick conversion of inventory into cash. This efficiency was also observed in previous quarters such as June 30, 2024, and March 31, 2024.

The cycle increased to 1.19 days as of December 31, 2023, suggesting a slight delay in the conversion process compared to the preceding quarters. This delay was more pronounced in the first quarter of 2023, with a cycle of 38.87 days, and in the quarter ending on December 31, 2022, with a cycle of 57.48 days.

Overall, the cash conversion cycle has exhibited variability, with periods of efficiency followed by slight delays. It is important for Viper Energy Ut to monitor and manage this cycle effectively to ensure optimal cash flow and working capital management.