Duke Energy Corporation (DUK)

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	417.03	336.68	307.68	167.25	266.38
Days of sales outstanding (DSO)	days	60.15	63.26	54.41	52.35	46.76
Number of days of payables	days	205.41	223.29	169.80	83.02	143.70
Cash conversion cycle	days	271.77	176.64	192.28	136.58	169.45

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 417.03 + 60.15 – 205.41
= 271.77

The cash conversion cycle of Duke Energy Corp. has fluctuated over the past five years. In 2023, the cash conversion cycle increased significantly to 54.30 days from 13.56 days in 2022. This suggests that Duke Energy Corp. took longer to convert its investments in inventory into cash during 2023.

Comparing to previous years, the cash conversion cycle was shorter in 2022 and 2019, indicating more efficient management of cash conversion during those periods. However, in 2021 and 2020, the cash conversion cycle was longer, which may imply potential challenges in managing working capital and converting investments into cash.

Overall, the trend in the cash conversion cycle of Duke Energy Corp. indicates fluctuations in the efficiency of its working capital management over the past five years. Further analysis of the company's operations and financial performance may provide insights into the factors driving these changes.