CenterPoint Energy Inc (CNP)
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 | 55.84 | 56.29 | 55.45 | 51.21 | 56.10 | 53.38 | 46.12 | 48.45 | 53.97 | 58.13 | 42.52 | 35.11 | 43.13 | 43.59 | 33.01 | 28.75 | 40.65 | 34.76 | 25.48 | 17.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 55.84 | 56.29 | 55.45 | 51.21 | 56.10 | 53.38 | 46.12 | 48.45 | 53.97 | 58.13 | 42.52 | 35.11 | 43.13 | 43.59 | 33.01 | 28.75 | 40.65 | 34.76 | 25.48 | 17.63 |
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 experienced fluctuations over the reported periods. Starting at 17.63 days on March 31, 2020, the cycle increased to 55.84 days by December 31, 2024.
The company's cash conversion cycle represents the average number of days it takes to convert investments in raw materials into cash inflows from sales. A higher number of days indicates a longer cycle, which may suggest inefficiencies in the company's operations or challenges in managing working capital effectively.
CenterPoint Energy's increasing cash conversion cycle over time may imply potential concerns, such as slower collections from customers or delays in inventory turnover. Monitoring and managing the cash conversion cycle is crucial for ensuring liquidity and operational efficiency within the company. It is advisable for CenterPoint Energy to analyze the underlying factors contributing to the lengthening cycle and implement strategies to optimize working capital management for improved cash flow and financial performance.
Peer comparison
Dec 31, 2024