Dominion Energy Inc (D)

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	111.75	99.71	109.06	104.25	91.90	162.86	159.62	143.76	154.71	147.50	106.54	96.51	89.14	87.33	113.11	113.44	110.54	124.38	126.41	139.04
Days of sales outstanding (DSO)	days	88.99	63.71	71.32	67.87	104.00	56.78	61.65	63.61	87.49	55.24	51.36	53.83	92.90	54.60	56.36	58.78	89.75	61.46	56.52	67.54
Number of days of payables	days	80.35	46.16	59.55	67.17	69.94	101.90	113.87	103.63	113.54	78.80	53.62	55.45	54.29	41.18	51.96	56.96	69.98	54.66	57.70	77.20
Cash conversion cycle	days	120.39	117.26	120.83	104.95	125.95	117.74	107.40	103.74	128.65	123.94	104.28	94.89	127.75	100.75	117.51	115.26	130.31	131.19	125.22	129.38

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 111.75 + 88.99 – 80.35
= 120.39

The cash conversion cycle of Dominion Energy Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 129.97 days compared to the previous quarter's 107.97 days. This indicates that the company is taking longer to convert its investments in inventory and accounts receivable into cash.

The trend in the cash conversion cycle from Q1 2023 to Q4 2023 shows a gradual increase in the number of days it takes for Dominion Energy Inc to convert its resources into cash. This may be a cause for concern as an increasing cash conversion cycle could lead to liquidity issues and inefficiencies in the company's operations.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we observe a significant increase from 64.80 days to 129.97 days in the cash conversion cycle. This suggests a deterioration in the company's ability to efficiently manage its working capital since it is taking much longer to convert its assets into cash.

Overall, Dominion Energy Inc should closely monitor its cash conversion cycle and work on strategies to shorten the cycle to ensure a more efficient use of its resources and improved liquidity position.