Evergy, Inc. (EVRG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 329.14 | 74.18 | 76.05 | 70.00 | 72.92 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 329.14 | 74.18 | 76.05 | 70.00 | 72.92 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 329.14 + — – —
= 329.14
Evergy, Inc.'s cash conversion cycle measures the length of time it takes for the company to convert its investments in inventory into cash receipts from customers. Looking at the data provided, we can observe fluctuations in the cash conversion cycle over the years as follows:
- As of December 31, 2020, the cash conversion cycle was 72.92 days.
- By December 31, 2021, the cycle decreased slightly to 70.00 days.
- Subsequently, on December 31, 2022, the cycle increased to 76.05 days.
- The trend continued as of December 31, 2023, with a cycle of 74.18 days.
- However, a significant spike was observed on December 31, 2024, with a cash conversion cycle of 329.14 days, indicating a substantial delay in converting investments into cash receipts.
The increase in the cash conversion cycle in 2024 may suggest potential issues with managing inventory or collecting receivables efficiently, which could impact the company's liquidity and working capital management. It would be important for Evergy, Inc. to analyze the underlying reasons for this sharp increase and take appropriate measures to improve its cash conversion cycle going forward.
Peer comparison
Dec 31, 2024