Peabody Energy Corp (BTU)
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 | 38.79 | 43.79 | 43.23 | 41.86 | 36.99 | 37.35 | 32.87 | 35.19 | 32.84 | 32.95 | 32.01 | 36.79 | 32.41 | 33.02 | 35.61 | 37.85 | 37.82 | 43.03 | 35.89 | 29.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 38.79 | 43.79 | 43.23 | 41.86 | 36.99 | 37.35 | 32.87 | 35.19 | 32.84 | 32.95 | 32.01 | 36.79 | 32.41 | 33.02 | 35.61 | 37.85 | 37.82 | 43.03 | 35.89 | 29.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.79 + — – —
= 38.79
The cash conversion cycle of Peabody Energy Corp provides insights into its efficiency in managing its cash flows related to operations, inventory, and receivables. Over the period from March 31, 2020, to December 31, 2024, the company's cash conversion cycle has shown fluctuations.
Initially, the cash conversion cycle was relatively low at 29.17 days on March 31, 2020, indicating efficient management of working capital. However, the cycle increased steadily to 43.79 days on September 30, 2024, before decreasing slightly to 38.79 days by December 31, 2024.
A shorter cash conversion cycle is generally favorable as it suggests that the company is able to convert its inventory and receivables into cash quickly, improving liquidity and efficiency. On the other hand, a longer cycle may indicate issues with inventory management or delays in collecting receivables, potentially leading to cash flow challenges.
Overall, the fluctuations in Peabody Energy Corp's cash conversion cycle over the analyzed period should be further investigated to assess the underlying factors driving these changes and to determine the effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2024