Eversource Energy (ES)

The cash conversion cycle of Eversource Energy has shown a generally favorable trend over the past five years. As of December 31, 2020, the cash conversion cycle stood at 21.70 days, indicating that on average, it took the company approximately 21.70 days to convert its investments in inventory to cash flows from sales.

By the end of 2021, the cash conversion cycle improved to 19.10 days, suggesting that the company was able to manage its inventory, accounts receivable, and accounts payable more efficiently, leading to a quicker conversion of investment into cash.

In 2022, the cash conversion cycle increased slightly to 19.86 days, indicating a small delay in the conversion process compared to the previous year. However, it remained relatively low, reflecting the company's effective management of working capital.

The trend shifted in 2023, with the cash conversion cycle elongating to 26.21 days. This increase suggests that Eversource Energy may have faced challenges in managing its working capital effectively during that period, leading to a slower conversion of investment into cash.

In 2024, the cash conversion cycle continued to rise to 26.47 days, indicating a further slowdown in the company's cash conversion process. This may raise concerns about the company's efficiency in managing its working capital and turning its investments into cash flows in a timely manner.

Overall, while the cash conversion cycle of Eversource Energy has fluctuated over the past five years, it is important for the company to focus on optimizing its working capital management to ensure a faster and more efficient conversion of investments into cash to support its financial health and operations.

Peer comparison

Dec 31, 2024