Duke Energy Corporation (DUK)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 138.53 | 102.38 | 95.34 | 102.36 | 102.36 | 96.49 | 104.36 | 108.45 | 115.55 | 117.54 | 102.39 | 95.03 | 87.33 | 83.58 | 87.49 | 90.29 | 93.99 | 92.49 | 94.09 | 92.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 138.53 | 102.38 | 95.34 | 102.36 | 102.36 | 96.49 | 104.36 | 108.45 | 115.55 | 117.54 | 102.39 | 95.03 | 87.33 | 83.58 | 87.49 | 90.29 | 93.99 | 92.49 | 94.09 | 92.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 138.53 + — – —
= 138.53
The cash conversion cycle of Duke Energy Corporation has exhibited fluctuations over the reported periods. From March 31, 2020, to December 31, 2024, the cycle ranged from a low of 83.58 days in September 2021 to a high of 138.53 days in December 2024, indicating varying efficiency in managing cash flows and working capital.
In general, a lower cash conversion cycle is favorable as it suggests that the company is able to convert its investments in inventory and receivables into cash quickly. Conversely, a higher cycle indicates that Duke Energy may be taking longer to collect payment from customers or convert inventory into sales, which could lead to liquidity challenges or inefficiencies in operations.
The rise in the cash conversion cycle from late 2022 to late 2024 may raise concerns about Duke Energy's ability to efficiently manage its working capital and cash flows during this period. It would be important for the company to assess and address the factors contributing to this trend to ensure optimal financial performance and sustainability in the long term.
Overall, a thorough analysis of Duke Energy's cash conversion cycle trends can provide valuable insights into its operational efficiency, liquidity management, and overall financial health.
Peer comparison
Dec 31, 2024