Constellation Energy Corp (CEG)
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 | 94.82 | 25.25 | 24.63 | 28.12 | 29.96 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 94.82 | 25.25 | 24.63 | 28.12 | 29.96 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.82 + — – —
= 94.82
The cash conversion cycle of Constellation Energy Corp has shown fluctuations over the past five years.
As of December 31, 2020, the company's cash conversion cycle was 29.96 days, which decreased to 28.12 days by the end of 2021. A further improvement was seen in 2022, with the cycle decreasing to 24.63 days, indicating a more efficient management of cash flow and working capital.
However, there was a slight increase in the cash conversion cycle in 2023 to 25.25 days, which suggests a temporary slowdown in the company's ability to convert its resources into cash.
The most significant change occurred in 2024, where the cash conversion cycle spiked to 94.82 days. This substantial increase may indicate potential challenges in managing the company's working capital efficiently, leading to a longer period to convert investments in inventory and accounts receivable into cash.
Overall, it is important for Constellation Energy Corp to closely monitor its cash conversion cycle to ensure optimal working capital management and sustainable cash flow operations.
Peer comparison
Dec 31, 2024