Resolute Energy (Resolute Energy) Cash Conversion Cycle : 9.45 (As of Sep. 2018)

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What is Resolute Energy Cash Conversion Cycle?

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

Resolute Energy's Days Sales Outstanding for the three months ended in Sep. 2018 was 9.45.
Resolute Energy's Days Inventory for the three months ended in Sep. 2018 was 0.
Resolute Energy's Days Payable for the three months ended in Sep. 2018 was 0.
Therefore, Resolute Energy's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2018 was 9.45.

Resolute Energy Cash Conversion Cycle Historical Data

The historical data trend for Resolute 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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Resolute Energy Cash Conversion Cycle Chart

Resolute Energy Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Cash Conversion Cycle

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88.36

64.38

44.21

32.31

19.83

Resolute Energy Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Cash Conversion Cycle	Get a 7-Day Free Trial															26.45	20.21	20.51	17.36	9.45

Competitive Comparison of Resolute Energy's Cash Conversion Cycle

For the Oil & Gas E&P subindustry, Resolute 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.

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

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

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

Resolute 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.

Resolute Energy's Cash Conversion Cycle for the fiscal year that ended in Dec. 2017 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	19.83	+	0	-	0
	=	19.83

Resolute Energy's Cash Conversion Cycle for the quarter that ended in Sep. 2018 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	9.45	+	0	-	0
	=	9.45

Resolute Energy (NYSE:REN) 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.

Resolute Energy Cash Conversion Cycle Related Terms

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Resolute Energy (Resolute Energy) Business Description

Industry

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Traded in Other Exchanges

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Address

1700 Lincoln Street, Suite 2800, Denver, CO, USA, 80203

Website

http://www.resoluteenergy.com

Resolute Energy Corp is an independent oil and gas company engaged in the exploitation, development, exploration for and acquisition of oil and gas properties. The group primarily operates in Oil, Gas and Natural gas liquids division. The company's operating assets are comprised primarily of properties in the Permian Basin in west Texas and southeast New Mexico and Aneth Field located in the Paradox Basin in the southeast. Geographically all the business activities of the firm are operated through the United States of America. Resolute derives the majority of revenue from oil division.