DTE Energy Company (DTE)

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	368.85	409.24	349.00	302.66	348.36	409.99	323.06	266.89	309.15	308.38	15.96	—	38.75	341.93	325.97	288.98	31.52	334.69	320.95	252.82
Days of sales outstanding (DSO)	days	51.18	41.34	33.70	33.53	41.42	37.25	44.10	40.91	43.46	44.08	45.88	47.55	53.71	47.27	53.68	52.22	54.37	47.22	40.73	45.84
Number of days of payables	days	476.28	418.46	391.04	407.43	593.17	633.37	659.34	483.25	509.49	460.04	406.98	348.23	362.10	404.44	425.63	420.18	458.27	428.95	440.94	410.62
Cash conversion cycle	days	-56.26	32.12	-8.34	-71.24	-203.39	-186.13	-292.19	-175.46	-156.87	-107.58	-345.14	-300.67	-269.64	-15.24	-45.98	-78.99	-372.39	-47.04	-79.26	-111.96

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 eight quarters.

In Q4 2023, the company's cash conversion cycle stood at 33.27 days, showing an improvement from the previous quarter's figure of 41.34 days. This indicates that the company took fewer days to convert its investments in inventory and other resources into cash during this period.

In Q1 2023, the cash conversion cycle was notably negative at -16.86 days, suggesting that DTE Energy Co. managed to convert its resources into cash much faster than in preceding quarters.

The variability in the cash conversion cycle over the quarters may indicate changes in the company's efficiency in managing its working capital, inventory, and receivables. It is essential for DTE Energy Co. to closely monitor and manage its cash conversion cycle to optimize its liquidity and operational efficiency.