Exelon Corporation (EXC)

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	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	54.93	38.08	28.48	23.06
Days of sales outstanding (DSO)	days	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	50.80	56.41	56.09	46.19
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	110.61	71.50	55.38	49.21
Cash conversion cycle	days	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	-4.88	22.99	29.19	20.04

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.18 + 56.64 – —
= 110.83

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. Exelon Corp.'s cash conversion cycle has exhibited variations over the past eight quarters. In Q1 2022, the company had a relatively short cash conversion cycle of -10.81 days, indicating efficient management of inventory and receivables to generate cash quickly. Subsequently, the cycle increased in Q2 and Q3 2022 before significantly decreasing in Q4 2022 to -86.47 days, reflecting potential improvements in working capital management.

In the first quarter of 2023, the cash conversion cycle expanded to -57.41 days, suggesting a slightly slower conversion of investments into cash compared to the previous quarter. However, the cycle decreased further in Q2 and Q3 2023, reaching -40.53 days and -33.21 days, respectively, which could indicate enhanced efficiency in managing working capital.

The most recent data for Q4 2023 shows the cash conversion cycle at -34.33 days, maintaining a negative trend, albeit with a slight increase from the prior quarter. Overall, the fluctuating but mostly negative cash conversion cycle figures of Exelon Corp. demonstrate a generally efficient conversion of resources into cash, with occasional periods reflecting potential areas for further optimization in working capital management.