Avista Corporation (AVA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.52 | 44.78 | 42.82 | 45.41 | 56.35 | 49.99 | 58.24 | 50.07 | 53.41 | 68.09 | 62.67 | 50.76 | 62.21 | 70.79 | 70.88 | 57.13 | 61.78 | 64.27 | 59.72 | 47.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 46.52 | 44.78 | 42.82 | 45.41 | 56.35 | 49.99 | 58.24 | 50.07 | 53.41 | 68.09 | 62.67 | 50.76 | 62.21 | 70.79 | 70.88 | 57.13 | 61.78 | 64.27 | 59.72 | 47.89 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.52 + — – —
= 46.52
The cash conversion cycle of Avista Corporation has shown fluctuations over the periods analyzed. The cycle, which represents the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales, was 47.89 days as of March 2020, peaked at 70.88 days in June 2021, and then decreased to 42.82 days by June 2024.
A lower cash conversion cycle indicates that the company is able to more efficiently manage its cash flow, inventory, and accounts receivable. This is generally a positive sign, as it implies that Avista Corporation is effectively leveraging its resources to generate sales and enhance liquidity.
It is important for the company to monitor its cash conversion cycle regularly to ensure optimal management of working capital and maximize operational efficiency. By analyzing trends in this cycle, Avista Corporation can identify areas for improvement and make strategic decisions to enhance its overall financial performance.
Peer comparison
Dec 31, 2024