Consolidated Edison Inc (ED)

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 26.66 26.21 25.00 23.40 23.59 21.26 19.92 19.04 22.49 26.97 24.23 23.14 26.54 25.40 23.41 22.94 25.49 25.05 23.21 22.92
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 26.66 26.21 25.00 23.40 23.59 21.26 19.92 19.04 22.49 26.97 24.23 23.14 26.54 25.40 23.41 22.94 25.49 25.05 23.21 22.92

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.66 + — – —
= 26.66

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Consolidated Edison Inc, we observe fluctuations in its cash conversion cycle over the period.

Analyzing the data, we see that the cash conversion cycle started at around 22.92 days on March 31, 2020, increased to 26.97 days by September 30, 2022, and then decreased to 26.66 days by December 31, 2024.

The trend indicates that Consolidated Edison Inc may have experienced challenges in efficiently managing its working capital, resulting in longer cash conversion cycles during certain periods. A longer cash conversion cycle may indicate inefficiencies in inventory management, collection from customers, or payment to suppliers.

It is crucial for the company to closely monitor its cash conversion cycle to ensure optimal working capital management and liquidity. By reducing the cash conversion cycle, Consolidated Edison Inc can improve its cash flows, reduce financing costs, and enhance overall operational efficiency.