DTE Energy Company (DTE)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 368.85 | 355.56 | 307.94 | 37.27 | 30.97 |
| Days of sales outstanding (DSO) | days | 51.18 | 41.42 | 44.64 | 53.71 | 54.37 |
| Number of days of payables | days | 476.28 | 605.44 | 507.48 | 348.28 | 450.39 |
| Cash conversion cycle | days | -56.26 | -208.46 | -154.91 | -257.30 | -365.05 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 368.85 + 51.18 – 476.28
= -56.26
The cash conversion cycle of DTE Energy Co. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 33.27 days from 41.42 days in 2022. This suggests an improvement in managing its cash flows and operating cycle efficiency.
Comparing back to 2021, where the cash conversion cycle was at 22.60 days, the cycle has lengthened in 2023. However, in 2023, the cash conversion cycle is still lower than in 2020 and 2019, indicating a more efficient cash conversion process than in those years.
Overall, the trend in the cash conversion cycle for DTE Energy Co. demonstrates fluctuations, with some years showing improvements while others experienced a lengthening of the cycle. This metric is crucial as it reflects how well the company manages its working capital and cash flow operations.
Peer comparison
Dec 31, 2023