Viper Energy Ut (VNOM)

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	—	—	—	—	0.66	—	—	2.75	19.19	9.87	2.29	—	—	—	—	—	—	—	—	2.62
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	0.00	0.00	0.00	0.00	0.66	0.00	0.00	2.75	19.19	9.87	2.29	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	2.62

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Viper Energy Ut, the cash conversion cycle has shown fluctuations over the periods analyzed:

- The cycle was relatively stable from March 2020 to March 2021, ranging between 0.00 days and 2.62 days.
- From June 2022 to December 2022, there was an increase in the cash conversion cycle, peaking at 19.19 days in December 2022.
- Subsequently, the cycle decreased to 0.66 days in December 2023 before remaining consistently low at 0.00 days from March 2024 onwards.

Overall, Viper Energy Ut has demonstrated a varied performance in managing its cash conversion cycle, with periods of efficiency followed by spikes in the cycle duration. Monitoring and managing the cash conversion cycle effectively can help optimize working capital and cash flow operations within the company.