Chesapeake Utilities Corporation (CPK)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 101.66 | 102.35 | 96.05 | 94.70 | 114.42 | 107.41 | 93.91 | 79.43 | 95.63 | 74.16 | 61.12 | 51.57 | 49.05 | 77.26 | 55.07 | 54.26 | 87.96 | 82.78 | 149.04 | 141.67 |
| Days of sales outstanding (DSO) | days | 41.16 | 27.31 | 25.35 | 33.65 | 35.08 | 29.69 | 30.41 | 38.32 | 48.63 | 38.25 | 33.54 | 44.95 | 52.17 | 48.47 | 43.49 | 46.83 | 52.98 | 34.55 | 45.30 | 62.98 |
| Number of days of payables | days | 232.21 | 185.42 | 153.88 | 132.72 | 215.68 | 179.13 | 146.31 | 116.40 | 203.92 | 214.93 | 201.51 | 239.38 | 212.62 | 283.89 | 226.22 | 247.80 | 308.17 | 350.16 | 442.33 | 653.71 |
| Cash conversion cycle | days | -89.40 | -55.76 | -32.48 | -4.37 | -66.18 | -42.03 | -21.99 | 1.36 | -59.66 | -102.52 | -106.86 | -142.87 | -111.41 | -158.16 | -127.66 | -146.71 | -167.23 | -232.84 | -248.00 | -449.06 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.66 + 41.16 – 232.21
= -89.40
The cash conversion cycle of Chesapeake Utilities Corp has shown variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was significantly negative at -14.55 days, indicating that it was able to convert its investments in inventory and accounts receivable into cash quickly. This improved efficiency suggests effective management of working capital.
In the preceding quarter, Q3 2023, the cash conversion cycle remained negative but to a lesser extent at -2.05 days, suggesting a slight slowdown in the company's ability to convert its resources into cash. However, this was still a favorable position.
In Q2 2023, the cash conversion cycle turned positive at 8.79 days, indicating that the company took longer to convert its investments into cash during this period. This increase in the cash conversion cycle could indicate potential issues in managing inventory levels or collecting receivables.
The cash conversion cycle increased further in Q1 2023 to 30.83 days, reflecting a significant slowdown in the company's cash conversion efficiency compared to the previous quarters. This extended cycle may suggest challenges in managing working capital effectively and could impact the company's liquidity.
Looking back at Q4 2022, the cash conversion cycle was at 10.29 days, indicating better efficiency compared to Q1 2023 but still showing a moderate delay in converting investments into cash. The subsequent quarters in 2022 also displayed fluctuating cash conversion cycles, with varying levels of efficiency in working capital management.
Overall, the trend in Chesapeake Utilities Corp's cash conversion cycle suggests fluctuations in the company's ability to efficiently convert investments in inventory and receivables into cash. Monitoring and managing working capital effectively will be crucial for maintaining healthy liquidity and operational efficiency.
Peer comparison
Dec 31, 2023