Entergy Corporation (ETR)
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 | 89.82 | 86.17 | 82.74 | 86.07 | 86.29 | 77.46 | 67.68 | 59.62 | 57.23 | 57.31 | 62.22 | 63.83 | 63.54 | 64.05 | 66.47 | 68.92 | 73.20 | 67.51 | 62.59 | 56.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 89.82 | 86.17 | 82.74 | 86.07 | 86.29 | 77.46 | 67.68 | 59.62 | 57.23 | 57.31 | 62.22 | 63.83 | 63.54 | 64.05 | 66.47 | 68.92 | 73.20 | 67.51 | 62.59 | 56.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.82 + — – —
= 89.82
Entergy Corporation's cash conversion cycle, which measures how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has fluctuated over the years.
From March 2020 to June 2022, the cash conversion cycle generally decreased, indicating improvements in efficiency in managing inventory, accounts receivable, and accounts payable. However, from September 2022 to December 2024, the cycle increased significantly, reflecting potential challenges in managing working capital effectively.
Overall, Entergy Corporation should focus on maintaining a balance between managing its inventory levels, collecting receivables efficiently, and negotiating favorable payment terms with suppliers to optimize its cash conversion cycle and enhance its liquidity position.
Peer comparison
Dec 31, 2024