Duke Energy Corporation (DUK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2,912.89 | 102.36 | 82.84 | 89.80 | 96.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 2,912.89 | 102.36 | 82.84 | 89.80 | 96.23 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2,912.89 + — – —
= 2,912.89
The cash conversion cycle of Duke Energy Corporation has fluctuated over the years.
As of December 31, 2020, the company's cash conversion cycle was 96.23 days. This indicates that, on average, it took Duke Energy 96.23 days to convert its investments in inventory into cash from sales.
By December 31, 2021, Duke Energy had managed to reduce its cash conversion cycle to 89.80 days, implying an improvement in its efficiency in managing its working capital.
The trend continued positively as of December 31, 2022, with Duke Energy further shortening its cash conversion cycle to 82.84 days. This suggests the company was able to streamline its operations and optimize its working capital management.
However, there was a notable increase in the cash conversion cycle as of December 31, 2023, reaching 102.36 days. This could indicate potential challenges in the company's cash flow management and working capital efficiency during that period.
Surprisingly, by December 31, 2024, Duke Energy saw a significant spike in its cash conversion cycle to 2,912.89 days. Such a sharp increase is unusual and could be a result of unique circumstances or irregularities in the financial data.
In summary, Duke Energy Corporation's cash conversion cycle has shown both improvements and fluctuations over the years, reflecting the company's effectiveness in managing its working capital and converting investments into cash.
Peer comparison
Dec 31, 2024