Eversource Energy (ES)
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 | 26.48 | 27.18 | 26.23 | 26.84 | 22.81 | 19.25 | 17.89 | 19.72 | 19.86 | 18.34 | 16.32 | 18.92 | 18.99 | 15.95 | 14.24 | 23.86 | 21.70 | 17.77 | 14.87 | 24.25 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 26.48 | 27.18 | 26.23 | 26.84 | 22.81 | 19.25 | 17.89 | 19.72 | 19.86 | 18.34 | 16.32 | 18.92 | 18.99 | 15.95 | 14.24 | 23.86 | 21.70 | 17.77 | 14.87 | 24.25 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.48 + — – —
= 26.48
The cash conversion cycle of Eversource Energy has shown fluctuations over the periods provided. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to March 31, 2024, Eversource Energy's cash conversion cycle has varied between approximately 14 to 27 days. Generally, a lower cash conversion cycle is preferable as it indicates that the company is able to convert its investments into cash more quickly, which can improve liquidity and working capital management.
Eversource Energy experienced a decrease in its cash conversion cycle from March 2020 to June 2020, showing an improvement in efficiency. The cycle then fluctuated over the following periods but remained relatively stable around the 15 to 27 days range.
Overall, analyzing the cash conversion cycle provides insights into Eversource Energy's effectiveness in managing its working capital and converting its investments into cash, which are essential aspects of financial health and operational efficiency. It would be important for the company to continue monitoring and managing its cash conversion cycle effectively to optimize its liquidity and financial performance.
Peer comparison
Dec 31, 2024