CenterPoint Energy Inc (CNP)
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 | 55.84 | 56.10 | 53.97 | 43.13 | 40.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 55.84 | 56.10 | 53.97 | 43.13 | 40.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.84 + — – —
= 55.84
The cash conversion cycle of CenterPoint Energy Inc has been increasing over the years, with a noticeable rise from 40.65 days as of December 31, 2020, to 55.84 days as of December 31, 2024. This indicates that the company is taking longer to convert its investments in inventory and receivables into cash. A longer cash conversion cycle may suggest inefficiencies in managing working capital and may lead to increased financing costs or liquidity challenges. It is important for CenterPoint Energy Inc to closely monitor and manage its cash conversion cycle to ensure optimal use of resources and maintain financial health.
Peer comparison
Dec 31, 2024