Peabody Energy Corp (BTU)

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 41.97 37.93 32.84 32.41 37.82
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 41.97 37.93 32.84 32.41 37.82

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.97 + — – —
= 41.97

The cash conversion cycle for Peabody Energy Corp has shown some variability over the past five years. It decreased from 37.82 days as of December 31, 2020, to 32.41 days by the end of 2021, indicating an improvement in the company's ability to convert its investment in inventory into cash.

However, there was a slight increase to 32.84 days by December 31, 2022. This suggests that the company might have experienced some challenges in managing its inventory or collecting receivables efficiently during that period.

The cash conversion cycle then increased further to 37.93 days by the end of 2023 and significantly rose to 41.97 days as of December 31, 2024. These upward trends may indicate potential issues in inventory management, sales collection, or payment processes, leading to a longer period required to convert investments in inventory back into cash.

Overall, the fluctuation in Peabody Energy Corp's cash conversion cycle over the analyzed period suggests the need for the company to focus on optimizing its working capital management to improve efficiency and maintain a healthy cash flow position going forward.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash conversion cycle
Peabody Energy Corp
BTU
41.97
Alpha Metallurgical Resources Inc
AMR
23.31