Entergy Corporation (ETR)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Days of inventory on hand (DOH)	days	179.55	168.33	163.57	164.90	158.18	161.69	158.44	129.27	129.59	127.51	122.29	137.49	128.07	113.89	110.22	105.76	96.93	97.03	83.57	73.67
Days of sales outstanding (DSO)	days	44.56	52.88	41.85	34.57	41.86	49.61	48.85	39.54	43.26	46.90	47.49	44.99	50.96	43.42	38.62	42.79	47.15	43.62	37.30	37.56
Number of days of payables	days	198.25	165.11	190.59	185.28	237.62	249.70	280.14	211.02	324.75	426.43	166.58	239.89	400.32	197.37	197.64	192.27	160.21	174.15	152.30	146.40
Cash conversion cycle	days	25.86	56.09	14.83	14.18	-37.58	-38.40	-72.85	-42.21	-151.90	-252.02	3.19	-57.41	-221.28	-40.06	-48.80	-43.73	-16.13	-33.50	-31.43	-35.17

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 179.55 + 44.56 – 198.25
= 25.86

The cash conversion cycle of Entergy Corp. has displayed fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 46.23 days, marking an increase from the previous quarter's 66.93 days. This uptick suggests that Entergy Corp. took longer to convert its invested cash back into cash inflows from sales during this period.

Comparing to Q4 2022, when the cash conversion cycle was significantly lower at 8.86 days, Entergy Corp. demonstrated a less efficient cash conversion cycle in Q4 2023. The company's cash conversion cycle was particularly extended in Q3 2023 at 66.93 days, indicating potential challenges in managing working capital effectively.

Overall, Entergy Corp.'s cash conversion cycle has experienced notable fluctuations in the past eight quarters, which may indicate shifts in the company's efficiency in managing its cash flow and working capital.