STR.WS (Sitio Royalties) Cash Conversion Cycle: 44.72 (As of Mar. 2022)

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STR.WS Sitio Royalties Corp STR.WS
12 GF Score
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! 4 Warning Signs
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What is Sitio Royalties Cash Conversion Cycle?

Sitio Royalties STR.WS 12 Cash Conversion Cycle is 44.72 as of Mar. 2022. GuruFocus rates STR.WS with a GF Score™ of 12/100. The stock has 4 warning signs investors should review.

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

Sitio Royalties's Days Sales Outstanding for the three months ended in Mar. 2022 was 44.72.
Sitio Royalties's Days Inventory for the three months ended in Mar. 2022 was 0.
Sitio Royalties's Days Payable for the three months ended in Mar. 2022 was 0.
Therefore, Sitio Royalties's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2022 was 44.72.


Sitio Royalties  (AMEX:STR.WS) 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.


Sitio Royalties Cash Conversion Cycle Related Terms


Sitio Royalties Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Sitio Royalties'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.

Sitio Royalties Cash Conversion Cycle Chart

Sitio Royalties Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Cash Conversion Cycle
Get a 7-Day Free Trial 12.82 -15.52 51.07 62.47 41.43

Sitio Royalties Quarterly Data
Dec16 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.87 49.19 44.52 44.41 44.72

STR.WS vs AMPY, CEI, EP: Cash Conversion Cycle Comparison

For the Oil & Gas E&P subindustry, Sitio Royalties'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.


Sitio Royalties Cash Conversion Cycle vs Oil & Gas Industry

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

* The bar in red indicates where Sitio Royalties's Cash Conversion Cycle falls into.


STR.WS
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Sitio Royalties Corp STR.WS
Cash Conversion Cycle is just one metric. See GF Score™, valuation, warning signs, and more.
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Sitio Royalties 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.

Sitio Royalties's Cash Conversion Cycle for the fiscal year that ended in Dec. 2021 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=41.43+0-0
=41.43

Sitio Royalties's Cash Conversion Cycle for the quarter that ended in Mar. 2022 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=44.72+0-0
=44.72

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 44.72 mean?
Sitio Royalties (STR.WS) has a Cash Conversion Cycle of 44.72 as of Mar. 2022. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sitio Royalties and its competitors.
Is Sitio Royalties' Cash Conversion Cycle too high?
Sitio Royalties' current Cash Conversion Cycle is 44.72. The Oil & Gas industry median Cash Conversion Cycle is 16.57. Sitio Royalties' value of 44.72 is 169.9% above this industry median. Overall, Sitio Royalties has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sitio Royalties' Cash Conversion Cycle compare to AMPY and CEI?
Sitio Royalties' Cash Conversion Cycle of 44.72 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 16.57. Sitio Royalties' value of 44.72 is 169.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 16.57, based on 921 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sitio Royalties's current Cash Conversion Cycle of 44.72 is 169.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sitio Royalties and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 16.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sitio Royalties's current Cash Conversion Cycle is 44.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sitio Royalties stock overvalued right now?
Sitio Royalties (STR.WS) has a current Cash Conversion Cycle of 44.72. The current Cash Conversion Cycle is 44.72 and 169.9% above the Oil & Gas industry median of 16.57. Sitio Royalties' overall GF Score™ is 12/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Sitio Royalties (STR.WS), the current Cash Conversion Cycle is 44.72 as of Mar. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Sitio Royalties Business Description

Industry EnergyOil & Gas
Address 609 Main Street, Suite 3950, Houston, TX, USA, 77002
Sitio Royalties Corp is a pure-play mineral and royalty company. The group is focused on large-scale consolidation of high-quality oil & gas mineral and royalty interests across premium basins. Sitio invests in mineral and royalty interests in the Permian and other productive U.S. oil basins.
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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