Constellation Energy Corp (CEG)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Days of inventory on hand (DOH)	days	29.16	25.76	23.48	22.09	27.40	28.46
Days of sales outstanding (DSO)	days	45.12	31.24	26.99	37.16	51.39	38.66
Number of days of payables	days	25.31	23.86	21.33	25.60	51.48	50.49
Cash conversion cycle	days	48.96	33.14	29.14	33.64	27.31	16.63

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.16 + 45.12 – 25.31
= 48.96

The cash conversion cycle of Constellation Energy Corporation has shown fluctuations over the past five quarters. In Q2 2023, the company had the shortest cash conversion cycle of 26.99 days, indicating that it took less time to convert its investments in inventory into cash. This was followed by Q3 2023 with a slightly longer cycle of 31.24 days. Q1 2023 and Q4 2023 had cash conversion cycles of 37.16 days and 41.76 days respectively, suggesting a lengthening of the cycle in these quarters. The longest cash conversion cycle was recorded in Q4 2022 at 49.52 days, which may indicate challenges in efficiently managing the company's working capital. Overall, Constellation Energy Corporation should focus on optimizing its inventory and accounts receivable management to reduce the cash conversion cycle and improve cash flow efficiency.