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Aris Water Solutions (Aris Water Solutions) Cash Conversion Cycle : 12.76 (As of Mar. 2024)


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What is Aris Water Solutions Cash Conversion Cycle?

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

Aris Water Solutions's Days Sales Outstanding for the three months ended in Mar. 2024 was 61.99.
Aris Water Solutions's Days Inventory for the three months ended in Mar. 2024 was 0.
Aris Water Solutions's Days Payable for the three months ended in Mar. 2024 was 49.23.
Therefore, Aris Water Solutions's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 12.76.


Aris Water Solutions Cash Conversion Cycle Historical Data

The historical data trend for Aris Water Solutions'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.

* Premium members only.

Aris Water Solutions Cash Conversion Cycle Chart

Aris Water Solutions Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
-59.37 -15.75 22.73 43.79 30.60

Aris Water Solutions Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 53.96 45.92 32.05 21.32 12.76

Competitive Comparison of Aris Water Solutions's Cash Conversion Cycle

For the Utilities - Regulated Water subindustry, Aris Water Solutions'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.


Aris Water Solutions's Cash Conversion Cycle Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Aris Water Solutions's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Aris Water Solutions's Cash Conversion Cycle falls into.



Aris Water Solutions 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.

Aris Water Solutions's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=65.66+0-35.06
=30.60

Aris Water Solutions's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=61.99+0-49.23
=12.76

* 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.


Aris Water Solutions  (NYSE:ARIS) 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.


Aris Water Solutions Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Aris Water Solutions's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Aris Water Solutions (Aris Water Solutions) Business Description

Traded in Other Exchanges
N/A
Address
9811 Katy Freeway, Suite 700, Houston, TX, USA, 77024
Aris Water Solutions Inc is an environmental infrastructure and solutions company that helps customers reduce their water and carbon footprints. It has two primary revenue streams. The Produced Water Handling business gathers, transports, and, unless recycled, handles produced water generated from oil and natural gas production. The Water Solutions business develops and operates recycling facilities to treat, store and recycle produced water.
Executives
Jacinto J Hernandez director 777 HIDDEN RIDGE, IRVING TX 75038
Nicholas A. Patterson officer: Chief Commercial Officer 9811 KATY FREEWAY, SUITE 700, HOUSTON TX 77024
Van Brunt David Dylan officer: Chief Operating Officer 9811 KATY FREEWAY, SUITE 700, HOUSTON TX 77024
Jeffrey K. Hunt officer: Chief Accounting Officer 9811 KATY FREEWAY, SUITE 700, HOUSTON TX 77024
Stephan E Tompsett officer: Chief Financial Officer 19100 RIDGEWOOD PARKWAY, SAN ANTONIO TX 78259
Joseph Colonnetta director 4747 GAILLARDIA PARKWAY, OKLAHOMA CITY OK 73142
Adrian Milton officer: CAO, General Counsel and Sec. 9811 KATY FREEWAY, SUITE 700, HOUSTON TX 77024
Hbc Water Resources Lp 10 percent owner 3963 MAPLE AVENUE, SUITE 450, DALLAS TX 75219
Hbc Water Resources Ii Lp 10 percent owner 3963 MAPLE AVENUE, SUITE 450, DALLAS TX 75219
Mario Max Yzaguirre director 1515 WEST 190TH STREET, SUITE 275, GARDENA CA 90248
Onocophillips 10 percent owner SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Concho Resources Inc 10 percent owner 600 W. ILLINOIS AVENUE, MIDLAND TX 79701
Cog Operating Llc 10 percent owner 600 W. ILLINOIS AVENUE, MIDLAND TX 79701
Yorktown Energy Partners Xi, L.p. 10 percent owner 410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Debra Coy director 2401 EAST KATELLA AVENUE, SUITE 300, ANAHEIM CA 92806