Consolidated Edison Inc (ED)
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 | 64.63 | 23.59 | 22.49 | 26.55 | 25.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 64.63 | 23.59 | 22.49 | 26.55 | 25.49 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.63 + — – —
= 64.63
Consolidated Edison Inc's cash conversion cycle has changed over the past five years. The company's cash conversion cycle was relatively stable between 2020 and 2022, ranging from 22.49 days to 26.55 days. However, there was a significant increase in the cash conversion cycle in 2024, reaching 64.63 days.
A lower cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash quickly, which is generally seen as a positive indicator. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing working capital.
The increase in Consolidated Edison Inc's cash conversion cycle in 2024 could potentially be a cause for concern as it indicates a longer period of time to convert investments into cash. Management may need to review and optimize their working capital management practices to improve cash flow efficiency in the future.
Peer comparison
Dec 31, 2024