Constellation Energy Corp (CEG)

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	39.95	30.41	29.68	27.38	26.34	22.25	20.84	19.85	24.63	26.17	29.31	27.87	28.12	29.89	27.32	26.84	31.67	30.66	31.88	29.29
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	39.95	30.41	29.68	27.38	26.34	22.25	20.84	19.85	24.63	26.17	29.31	27.87	28.12	29.89	27.32	26.84	31.67	30.66	31.88	29.29

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.95 + — – —
= 39.95

Constellation Energy Corp's cash conversion cycle has shown fluctuations over the past few years. The cycle measures the time it takes for the company to convert its investments in inventory into cash from sales and back into cash.

From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 19.85 days to a high of 39.95 days. The trend showed a decrease in the cycle from March 31, 2020, to March 31, 2023, indicating the company's ability to manage its inventory, receivables, and payables efficiently during this period.

However, from March 31, 2023, to December 31, 2024, the cash conversion cycle started to increase again. This increase might suggest possible challenges in managing inventory or delayed collections from sales activities.

Analyzing the cash conversion cycle can provide insights into the company's operational efficiency and liquidity management. Constellation Energy Corp should continue monitoring and improving its cash conversion cycle to ensure optimal use of resources and maintain a healthy cash flow position.