American Electric Power Co Inc (AEP)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 131.72 | 719.96 | 808.61 | 901.71 | 701.77 | 668.40 | 529.55 | 462.59 | 435.69 | 437.94 | 414.23 | 433.34 | 428.04 | 534.72 | 599.41 | 625.85 | 569.73 | 576.06 | 548.72 | 555.53 |
| Days of sales outstanding (DSO) | days | 56.22 | 54.23 | 51.50 | 53.51 | 56.69 | 51.68 | 49.65 | 54.97 | 54.78 | 55.13 | 47.16 | 49.29 | 57.10 | 58.35 | 53.05 | 55.70 | 50.46 | 47.94 | 47.47 | 45.21 |
| Number of days of payables | days | 202.56 | 967.64 | 909.37 | 975.11 | 921.52 | 967.31 | 824.67 | 948.84 | 860.71 | 873.35 | 725.93 | 900.06 | 698.64 | 738.64 | 803.00 | 816.81 | 746.09 | 732.79 | 731.10 | 991.04 |
| Cash conversion cycle | days | -14.63 | -193.45 | -49.26 | -19.89 | -163.06 | -247.23 | -245.47 | -431.29 | -370.24 | -380.27 | -264.54 | -417.43 | -213.50 | -145.57 | -150.54 | -135.25 | -125.91 | -108.80 | -134.91 | -390.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 131.72 + 56.22 – 202.56
= -14.63
The cash conversion cycle of American Electric Power Co Inc has exhibited fluctuations over the period from December 31, 2019, to December 31, 2024. The company's cash conversion cycle, which measures the time it takes to convert investments in inventory and other resources into cash flows from sales, has shown a consistent negative trend during this period.
Initially, the company reported a negative cash conversion cycle, indicating efficient management of working capital where it took fewer days to convert investments into cash inflows. However, in the latter part of the period under review, the cash conversion cycle experienced significant variability, with periods of both lower and higher negative values.
The negative values observed in the cash conversion cycle indicate that American Electric Power Co Inc is managing its working capital efficiently, enabling it to quickly convert investments into cash. The fluctuations in the cycle could be attributed to changes in the company's operational efficiency, inventory management, and receivables collection practices.
Overall, the trend in the cash conversion cycle of American Electric Power Co Inc suggests that the company is effectively managing its working capital and has been able to maintain a swift conversion of investments into cash inflows, albeit with some variation in efficiency over the analyzed period.
Peer comparison
Dec 31, 2024