Avista Corporation (AVA)
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 | 88.28 | 83.14 | 53.41 | 62.21 | 61.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 88.28 | 83.14 | 53.41 | 62.21 | 61.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.28 + — – —
= 88.28
The cash conversion cycle of Avista Corporation has shown some fluctuations over the past five years. In December 2020, the company's cash conversion cycle was 61.78 days, which increased slightly to 62.21 days by December 2021. However, there was a notable improvement in efficiency by December 2022, with the cycle decreasing to 53.41 days.
Unfortunately, the trend reversed in the following years, as the cash conversion cycle significantly lengthened. By December 2023, it reached 83.14 days, indicating potential challenges in managing cash flows and working capital. The situation worsened in December 2024, with the cycle extended to 88.28 days, suggesting possible liquidity issues and inefficiencies in the company's operations.
Overall, Avista Corporation experienced mixed performance in its cash conversion cycle over the analyzed period, with periods of improvement followed by challenges. Management should closely monitor working capital processes and cash flow management to address any inefficiencies and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024