Williams Companies Inc (WMB)
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 | 127.08 | 116.28 | 103.20 | 97.87 | 134.25 | 208.37 | 191.26 | 110.82 | 219.23 | 134.05 | 73.45 | 53.80 | 23.73 | 24.44 | 20.63 | 15.31 | 31.10 | 42.65 | 42.98 | 27.52 |
| Days of sales outstanding (DSO) | days | 55.38 | 46.86 | 43.17 | 48.28 | 90.64 | 85.95 | 94.56 | 68.33 | 67.94 | 76.61 | 40.88 | 45.87 | 47.24 | 47.71 | 42.44 | 42.12 | 44.33 | 38.49 | 37.30 | 39.19 |
| Number of days of payables | days | 639.56 | 593.62 | 456.65 | 504.58 | 976.27 | 1,218.07 | 1,286.78 | 873.35 | 1,009.97 | 609.79 | 231.34 | 200.99 | 84.10 | 72.22 | 118.38 | 52.35 | 137.34 | 199.03 | 201.10 | 132.26 |
| Cash conversion cycle | days | -457.10 | -430.48 | -310.27 | -358.44 | -751.37 | -923.74 | -1,000.95 | -694.20 | -722.80 | -399.13 | -117.01 | -101.32 | -13.13 | -0.07 | -55.31 | 5.08 | -61.91 | -117.89 | -120.83 | -65.55 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 127.08 + 55.38 – 639.56
= -457.10
The cash conversion cycle of Williams Cos Inc has fluctuated over the past eight quarters, showing variations in the company's efficiency in managing its cash flow. A negative cash conversion cycle generally indicates that the company is able to generate cash from its operations before having to pay its suppliers, which is considered favorable.
In Q4 2023, the cash conversion cycle was reported to be -158.69 days, indicating a significant improvement from the previous quarter of -136.23 days. This suggests that the company was able to convert its investments in inventory and accounts receivable into cash more quickly during this period.
However, in Q2 and Q3 of 2023, the cash conversion cycle experienced fluctuations, with -77.50 days and -70.38 days, respectively. These values reflect a faster cash conversion compared to the previous year, but also indicate some inefficiencies in managing working capital during those quarters.
Looking back to Q4 2022, there was a cash conversion cycle of -126.80 days, suggesting that the company had experienced better cash conversion efficiency during that period compared to Q3 2022 and Q2 2022, where the values were -116.30 days and -101.20 days, respectively.
Overall, the trend in the cash conversion cycle of Williams Cos Inc indicates some variability in the company's ability to efficiently manage its cash flow over the past year. Further analysis of the underlying factors driving these fluctuations would be needed to assess the company's overall financial performance and working capital management.
Peer comparison
Dec 31, 2023