Edison International (EIX)

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	24.96	24.12	39.12	36.17	33.48	31.07	30.52	34.35	38.87	37.85	38.32	83.80	—	6,141.52	15,492.22	672.56	1,253.40	1,895.82	1,232.81	—
Days of sales outstanding (DSO)	days	61.62	72.18	52.56	47.00	49.51	78.52	58.09	47.14	53.68	67.74	56.45	62.90	65.24	82.37	48.90	39.57	23.29	32.39	22.47	20.23
Number of days of payables	days	93.91	100.68	137.03	129.87	166.64	166.19	144.91	156.18	185.28	187.32	169.62	322.70	—	26,835.43	67,200.56	2,693.96	6,032.83	9,059.63	5,877.24	—
Cash conversion cycle	days	-7.34	-4.39	-45.35	-46.69	-83.64	-56.60	-56.30	-74.69	-92.73	-81.73	-74.84	-176.01	65.24	-20,611.54	-51,659.43	-1,981.82	-4,756.14	-7,131.42	-4,621.97	20.23

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.96 + 61.62 – 93.91
= -7.34

The cash conversion cycle of Edison International has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 61.62 days from 72.18 days in Q3 2023. This reduction indicates an improvement in the company's ability to efficiently convert its investments in inventory and accounts receivable into cash.

Comparing Q4 2023 to Q1 2023, there has been an increase in the cash conversion cycle from 47.00 days to 61.62 days. This rise suggests a lengthening of the time it takes for the company to convert its resources into cash.

Although there has been variability in the cash conversion cycle over the quarters, it is essential to monitor trends over time to assess the company's operational efficiency and liquidity management effectively.