Exelon Corporation (EXC)
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 | 55.96 | 56.54 | 54.80 | 53.05 | 54.18 | 53.98 | 51.03 | 47.17 | 53.78 | 47.13 | 33.58 | 24.10 | 75.58 | 68.00 | 66.03 | 68.29 | 78.62 | 86.44 | 92.37 | 86.45 |
| Days of sales outstanding (DSO) | days | 59.50 | 58.27 | 59.50 | 58.92 | 56.64 | 57.79 | 55.91 | 63.82 | 68.48 | 67.54 | 62.30 | 60.68 | 104.30 | 77.25 | 63.04 | 59.98 | 51.96 | 47.10 | 47.10 | 58.27 |
| Number of days of payables | days | — | — | — | — | — | — | — | 199.83 | 240.91 | 167.65 | 131.91 | 102.40 | 96.20 | 138.17 | 137.60 | 143.52 | 162.62 | 160.29 | 158.02 | 147.73 |
| Cash conversion cycle | days | 115.46 | 114.81 | 114.31 | 111.97 | 110.83 | 111.77 | 106.94 | -88.83 | -118.65 | -52.99 | -36.03 | -17.61 | 83.67 | 7.08 | -8.53 | -15.26 | -32.04 | -26.74 | -18.56 | -3.02 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.96 + 59.50 – —
= 115.46
Exelon Corporation's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and accounts receivable into cash. A negative cash conversion cycle implies that Exelon is able to collect cash from customers before needing to pay suppliers, which can indicate efficient working capital management.
Analyzing the trend of Exelon's cash conversion cycle from March 2020 to December 2024, we observe significant fluctuations over time. The cycle started with negative values, indicating efficient working capital management. However, it turned positive in December 2021, reaching 83.67 days, which could indicate a delay in collecting cash from receivables or managing inventory effectively.
Subsequently, the cash conversion cycle improved in March 2022, with a negative value of -17.61 days, but it deteriorated again in December 2022 to -118.65 days, indicating a potential issue in managing cash flow and working capital requirements.
From June 2023 onwards, there was a steep increase in the cash conversion cycle, reaching a high of 114.31 days in June 2024. This prolonged cycle could suggest challenges in efficiently managing inventory, collecting receivables, or paying off payables.
Overall, Exelon Corporation experienced fluctuations in its cash conversion cycle over the analyzed period, indicating varying levels of efficiency in managing working capital and cash flow. It is essential for Exelon to focus on optimizing its cash conversion cycle to ensure effective liquidity management and long-term financial health.
Peer comparison
Dec 31, 2024