Constellation Energy Corp (CEG)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Days of inventory on hand (DOH)	days	28.10	26.52	26.20
Days of sales outstanding (DSO)	days	45.12	51.39	4.48
Number of days of payables	days	24.39	49.83	35.74
Cash conversion cycle	days	48.83	28.08	-5.06

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.10 + 45.12 – 24.39
= 48.83

The cash conversion cycle of Constellation Energy Corporation has shown fluctuations over the past four years. In 2023, the company's cash conversion cycle was 41.76 days, reflecting an improvement compared to the previous year where it was 49.52 days. This indicates that the company was able to convert its invested resources back into cash more efficiently in 2023.

However, comparing 2023 to 2020, where the cash conversion cycle was 37.39 days, there has been a slight increase in the number of days it takes for Constellation Energy Corporation to convert its investments in inventory and accounts receivable back into cash in 2023.

Overall, the trend in the cash conversion cycle of Constellation Energy Corporation shows some variability, with potential areas for further analysis to understand the underlying factors driving these fluctuations.