Karoon Energy (ASX:KAR) Cash Conversion Cycle : -74.33 (As of Dec. 2023)

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What is Karoon Energy Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Karoon Energy's Days Sales Outstanding for the six months ended in Dec. 2023 was 24.18.
Karoon Energy's Days Inventory for the six months ended in Dec. 2023 was 35.54.
Karoon Energy's Days Payable for the six months ended in Dec. 2023 was 134.05.
Therefore, Karoon Energy's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was -74.33.

Karoon Energy Cash Conversion Cycle Historical Data

The historical data trend for Karoon Energy's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Karoon Energy Cash Conversion Cycle Chart

Karoon Energy Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Cash Conversion Cycle

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-121.31

-171.46

-155.80

Karoon Energy Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															-110.57	42.42	-198.82	-180.35	-74.33

Competitive Comparison of Karoon Energy's Cash Conversion Cycle

For the Oil & Gas E&P subindustry, Karoon Energy's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Karoon Energy's Cash Conversion Cycle Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Karoon Energy's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Karoon Energy's Cash Conversion Cycle falls into.

Karoon Energy Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Karoon Energy's Cash Conversion Cycle for the fiscal year that ended in Jun. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	39.64	+	67.61	-	263.05
	=	-155.80

Karoon Energy's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	24.18	+	35.54	-	134.05
	=	-74.33

Karoon Energy (ASX:KAR) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

Karoon Energy Cash Conversion Cycle Related Terms

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Karoon Energy (ASX:KAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Karoon Energy Ltd (ASX:KAR) » Definitions » Cash Conversion Cycle

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KRNGY:USA KRNGF:USA LBL:Germany

Address

6 Riverside Quay, Level 3, Suite 3.02, Southbank, Melbourne, VIC, AUS, 3006

Website

https://www.karoonenergy.com.au

Karoon produces around 8 million barrels of oil annually from its wholly owned Bauna field in Brazil's offshore Santos basin. The company acquired Bauna from Petrobras in 2020 and has been steadily increasing production via well interventions and new developments. Field life is approaching eight years based on proven and probable 2P reserves of 55 million barrels at end December 2022, though this excludes a further 82 million barrels in 2C contingent resources which which have potential to increase life further. We credit life of approximately 10 years, assuming partial conversion of 2C contingent resources into reserve category with drilling. There are also prospective untested targets within Karoon's permits which could potentially add further reserves in the medium term.