Chesapeake Utilities Corporation (CPK)
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 | 6.68 | 21.56 | 22.86 | 24.68 | 25.68 | 21.10 | 20.63 | 21.72 | 21.63 | 17.76 | 18.91 | 19.29 | 21.76 | 15.01 | 14.09 | 13.79 | 14.13 | 11.75 | 11.29 | 11.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 6.68 | 21.56 | 22.86 | 24.68 | 25.68 | 21.10 | 20.63 | 21.72 | 21.63 | 17.76 | 18.91 | 19.29 | 21.76 | 15.01 | 14.09 | 13.79 | 14.13 | 11.75 | 11.29 | 11.63 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.68 + — – —
= 6.68
The cash conversion cycle of Chesapeake Utilities Corporation has shown some fluctuations over the years. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was relatively stable in the mid-teens range during 2020 and 2021. However, there was a notable increase in the cash conversion cycle towards the end of 2021, reaching a peak of 25.68 days by December 31, 2023.
Subsequently, there was a gradual decline in the cash conversion cycle, reaching a low of 6.68 days by December 31, 2024. This significant reduction indicates a more efficient management of working capital and quicker conversion of inventory and receivables into cash during this period.
Overall, the trend in Chesapeake Utilities Corporation's cash conversion cycle suggests some variability in working capital efficiency over the years. It is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024