Edison International (EIX)
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 | 17.68 | 17.97 | 18.73 | 19.84 | 19.99 | 18.24 | 17.43 | 16.63 | 15.59 | 15.06 | 15.25 | 16.07 | 16.68 | 16.62 | 16.84 | 17.67 | 17.30 | 16.71 | 17.56 | 16.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 17.68 | 17.97 | 18.73 | 19.84 | 19.99 | 18.24 | 17.43 | 16.63 | 15.59 | 15.06 | 15.25 | 16.07 | 16.68 | 16.62 | 16.84 | 17.67 | 17.30 | 16.71 | 17.56 | 16.90 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.68 + — – —
= 17.68
The cash conversion cycle of Edison International has shown fluctuations over the past few years. The cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2024, the cash conversion cycle ranged from a low of 15.06 days in September 2022 to a high of 19.99 days in December 2023. Generally, a shorter cash conversion cycle indicates that the company has good efficiency in managing its working capital.
In the recent periods, there has been a decreasing trend in the cash conversion cycle, reaching 17.68 days by December 2024. This may suggest that the company is improving its management of cash flows, inventory, and accounts receivable, potentially leading to enhanced liquidity and financial performance.
It is important for Edison International to continue monitoring and managing its cash conversion cycle effectively to ensure optimal cash flow management and overall financial health.
Peer comparison
Dec 31, 2024