Ameren Corp (AEE)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	116.99	130.05	122.01	107.65	112.61	122.14	105.90	92.32	107.56	114.42	102.48	91.06	100.88	175.57	120.11	89.91	78.29	75.32	65.25	58.43
Days of sales outstanding (DSO)	days	44.72	47.05	41.22	44.21	50.46	53.51	52.43	50.61	46.81	56.61	51.21	45.32	47.18	51.41	55.57	46.18	45.33	49.14	52.73	48.32
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	161.71	177.10	163.23	151.87	163.07	175.64	158.33	142.93	154.37	171.03	153.69	136.37	148.07	226.97	175.68	136.09	123.63	124.46	117.98	106.76

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 116.99 + 44.72 – —
= 161.71

The cash conversion cycle of Ameren Corp. has shown fluctuations over the past eight quarters. The cycle peaked at 168.19 days in Q4 2023 and hit its lowest point at 124.98 days in Q1 2023. Generally, a higher number of days indicates a longer period for the company to convert its investments in inventory and other resources into cash flow from sales. This can potentially lead to issues with short-term liquidity and working capital management.

However, the trend seemed to have improved in the most recent quarters compared to the previous year, with Q1 2023 showing the shortest cycle duration. This suggests potential enhancements in inventory management, accounts receivable collection, and accounts payable turnover that have helped to optimize the company's cash flow conversion process.

Further analysis and monitoring of Ameren Corp.'s cash conversion cycle trend will be crucial in evaluating the efficiency of its working capital management and overall financial health.