Ameren Corp (AEE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.43 | 66.34 | 52.76 | 63.50 | 64.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 22.43 | 66.34 | 52.76 | 63.50 | 64.77 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.43 + — – —
= 22.43
The cash conversion cycle of Ameren Corp has shown fluctuations over the years. In 2020, the company's cash conversion cycle was 64.77 days, which decreased to 63.50 days in 2021. Subsequently, the cycle further decreased to 52.76 days in 2022, indicating an improvement in the company's efficiency in converting its investments in inventory and accounts receivable into cash.
However, in 2023, the cash conversion cycle increased to 66.34 days, suggesting a slight delay in the cash inflows relative to the outflows. Nonetheless, in 2024, Ameren Corp managed to significantly reduce its cash conversion cycle to 22.43 days. This sharp decrease indicates a commendable effort in optimizing its working capital management processes to accelerate cash flows efficiently.
Overall, Ameren Corp has demonstrated a mix of fluctuations and improvements in its cash conversion cycle over the years, showcasing varying levels of effectiveness in managing its working capital and liquidity. Efforts to maintain a shorter cash conversion cycle can help enhance the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024