Edison International (EIX)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4,092.66 | 4,119.29 | 3,930.77 | — | 1,241.68 |
| Days of sales outstanding (DSO) | days | 61.62 | 49.51 | 53.68 | 65.24 | 23.29 |
| Number of days of payables | days | 15,399.89 | 20,500.83 | 18,736.67 | — | 5,976.45 |
| Cash conversion cycle | days | -11,245.62 | -16,332.03 | -14,752.22 | 65.24 | -4,711.47 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4,092.66 + 61.62 – 15,399.89
= -11,245.62
The cash conversion cycle for Edison International has shown fluctuations over the last five years. In 2023, the company's cash conversion cycle was 61.62 days, indicating that it takes approximately 61.62 days for the company to convert its investments in inventory into cash received from the sale of products or services.
Compared to the previous years, the cash conversion cycle was higher in 2023 than in 2022 (49.51 days) and 2021 (53.68 days), suggesting a potential delay in converting inventory investments into cash receipts. However, it was lower than in 2020 (65.24 days), indicating an improvement in efficiency in managing working capital.
In 2019, the cash conversion cycle was the lowest at 41.21 days, signaling a more efficient management of working capital compared to the subsequent years.
Overall, Edison International's cash conversion cycle has exhibited some variability in recent years, and continued monitoring and analysis of working capital management practices will be important to ensure optimal efficiency in converting investments into cash inflows.
Peer comparison
Dec 31, 2023