Exelon Corporation (EXC)

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	52.67	50.77	49.87	63.85	64.54
Days of sales outstanding (DSO)	days	59.50	56.65	68.47	104.30	104.22
Number of days of payables	days	—	—	223.39	81.27	133.50
Cash conversion cycle	days	112.17	107.41	-105.04	86.88	35.26

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.67 + 59.50 – —
= 112.17

Exelon Corporation's cash conversion cycle, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown varying trends over the years. In 2020, the company had a relatively efficient cash conversion cycle of 35.26 days, indicating strong liquidity and effective management of operating cash flows. However, in 2021, the cash conversion cycle significantly increased to 86.88 days, suggesting potential challenges in efficiently managing working capital.

Interestingly, in 2022, the cash conversion cycle exhibited a negative value of -105.04 days, implying that Exelon Corporation was able to convert its investments into cash much faster than its payment obligations were due. This negative cycle could be attributed to improved inventory management or favorable payment terms with suppliers.

By the end of 2023, the cash conversion cycle increased to 107.41 days, indicating a longer time for the company to realize cash from its operations compared to the previous year. Furthermore, in 2024, the cycle continued to rise to 112.17 days, signifying potential inefficiencies in managing working capital and liquidity.

Overall, the fluctuating trends in Exelon Corporation's cash conversion cycle suggest the need for continuous monitoring and adjustment of working capital practices to enhance operational efficiency and strengthen cash flow management in the future.