Edison International (EIX)
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 | 18.92 | 19.99 | 15.59 | 16.69 | 17.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 18.92 | 19.99 | 15.59 | 16.69 | 17.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 18.92 + — – —
= 18.92
The cash conversion cycle for Edison International has been relatively stable over the past five years, with a slight decrease from 17.31 days in 2020 to 16.69 days in 2021. This indicates that the company is efficiently managing its cash flow and working capital, as it takes Edison International approximately 16 to 17 days to convert its investments in inventory and accounts receivable into cash.
However, there was a slight increase in the cash conversion cycle in 2023 to 19.99 days, which could suggest a potential delay in converting investments back into cash during that period. Nevertheless, the cycle decreased to 18.92 days in 2024, demonstrating a partial recovery.
Overall, the trend in the cash conversion cycle for Edison International reflects a generally efficient cash management process, with occasional deviations that may require attention to ensure optimal working capital management in the future.
Peer comparison
Dec 31, 2024