Ameren Corp (AEE)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	114.29	110.61	104.84	97.77	77.79
Days of sales outstanding (DSO)	days	44.72	50.46	46.81	47.18	45.33
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	159.01	161.07	151.65	144.96	123.12

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 114.29 + 44.72 – —
= 159.01

The cash conversion cycle for Ameren Corp. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle stood at 168.19 days, showing an improvement from the previous year's figure of 141.40 days. This indicates that Ameren was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023 compared to 2022.

Looking back further, in 2021, the cash conversion cycle was 179.46 days, which was higher than both the current year and the previous year. In 2020, the cycle was notably higher at 236.78 days, indicating a delay in the conversion of investments to cash compared to recent years. The performance in 2019 was relatively similar to 2021, with a cash conversion cycle of 210.60 days.

Overall, Ameren Corp. has shown variability in its cash conversion cycle over the past five years. The trend suggests that the company has made efforts to improve its efficiency in managing its working capital and converting investments into cash, as evidenced by the decreasing trend from 2021 to 2023. However, there is room for further improvement to ensure consistent and optimal cash conversion cycles in the future.