FirstEnergy Corporation (FE)
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 | 45.79 | 40.22 | 33.46 | 27.55 | 37.69 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 45.79 | 40.22 | 33.46 | 27.55 | 37.69 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.79 + — – —
= 45.79
The cash conversion cycle of FirstEnergy Corporation has exhibited fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 37.69 days, indicating the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2021, the cash conversion cycle had decreased to 27.55 days, suggesting an improvement in the company's efficiency in managing its working capital. However, by December 31, 2022, the cycle increased to 33.46 days, signaling a potential slowdown in the conversion process.
Subsequently, the cash conversion cycle further extended to 40.22 days by December 31, 2023, possibly indicating challenges in inventory management or collection of receivables. The trend continued into December 31, 2024, with the cycle reaching 45.79 days, reflecting a longer period required to convert investments into cash.
Overall, the fluctuating cash conversion cycle of FirstEnergy Corporation suggests varying efficiencies in managing its operating cycle and working capital components over the five-year period. It will be essential for the company to closely monitor and optimize these processes to ensure effective cash flow management in the future.
Peer comparison
Dec 31, 2024