Consolidated Edison Inc (ED)

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	33.19	32.55	31.10	30.60	34.78	34.83	29.65	27.09	29.75	28.68	25.91	24.87	26.63	28.87	28.24	27.91	30.80	32.34	31.68	30.93
Days of sales outstanding (DSO)	days	59.89	48.35	39.05	46.50	51.05	50.79	51.39	56.08	51.62	53.12	48.34	56.18	51.27	45.64	40.10	39.61	36.34	36.55	32.76	39.49
Number of days of payables	days	125.63	93.43	94.60	96.77	138.18	103.70	102.16	87.71	101.90	97.00	87.58	88.61	110.32	104.60	85.56	86.88	101.84	97.73	91.55	95.53
Cash conversion cycle	days	-32.54	-12.53	-24.44	-19.67	-52.35	-18.08	-21.12	-4.54	-20.54	-15.21	-13.33	-7.56	-32.43	-30.10	-17.21	-19.37	-34.70	-28.84	-27.11	-25.11

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.19 + 59.89 – 125.63
= -32.54

The cash conversion cycle of Consolidated Edison, Inc. has fluctuated over the past eight quarters, indicating varying efficiency in managing its operating cycle.

- In Q4 2023, the company had a negative cash conversion cycle of -36.24 days, meaning it was able to convert its inventory into cash quickly and efficiently.
- This was a significant improvement compared to the previous quarter in Q3 2023, where the company had a cash conversion cycle of 1.86 days, indicating a delay in converting inventory into cash.
- However, in Q2 2023 and Q1 2023, the company had negative cash conversion cycles of -10.18 days and -6.38 days respectively, indicating efficient management of working capital during those periods.
- In comparison, the company faced challenges in Q4 2022 with a cash conversion cycle of -55.60 days, which improved in subsequent quarters but remained negative.
- Overall, the company has demonstrated some variability in its cash conversion cycle performance, suggesting the need for continuous monitoring and optimization of working capital efficiency.