Evergy Inc. Common Stock (EVRG)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	181.66	180.11	181.99	185.41	176.62	162.65	170.59	165.34	154.84	153.70	153.20	141.33	145.22	145.96	148.46	142.97	138.43	156.19	163.06	160.76
Days of sales outstanding (DSO)	days	29.01	31.91	30.04	21.58	32.74	37.67	40.39	23.74	26.81	38.19	45.52	34.59	38.24	40.82	49.88	31.30	16.20	18.81	19.46	12.29
Number of days of payables	days	144.38	101.75	92.27	93.82	157.70	105.28	127.12	106.89	174.78	123.25	111.04	99.13	188.26	102.29	94.96	85.43	152.00	107.00	92.79	101.21
Cash conversion cycle	days	66.29	110.27	119.76	113.17	51.66	95.04	83.86	82.19	6.86	68.65	87.69	76.79	-4.80	84.48	103.38	88.85	2.63	68.00	89.73	71.84

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 181.66 + 29.01 – 144.38
= 66.29

The cash conversion cycle of Evergy Inc has been fluctuating over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 56.68 days, showing an improvement from the previous quarter's 94.47 days. This indicates that Evergy Inc was able to more efficiently convert its resources into cash in the most recent quarter.

Looking further back, the trend in the cash conversion cycle reveals variations. In the earlier quarters of 2023, Q3 and Q2, the cycle was relatively high at 93.11 days and 82.71 days, respectively, suggesting a longer cash conversion process during these periods. Prior to that, in Q1 2023, the cycle was 34.67 days, indicating a quicker conversion compared to the subsequent quarters.

In comparison to the same periods in the previous year, Q4 and Q3 of 2022 had higher cash conversion cycles of 73.10 days and 77.23 days, respectively. However, Q2 and Q1 of 2022 showed slightly lower cash conversion cycles at 69.44 days and 77.23 days.

Overall, Evergy Inc's cash conversion cycle has exhibited fluctuations, with some quarters showing improvements in converting resources into cash more efficiently compared to others. It is important for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal operational and financial performance.