FirstEnergy Corporation (FE)
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 | 108.27 | 98.30 | 89.60 | 88.77 | 81.48 | 74.95 | 66.01 | 62.16 | 60.03 | 56.96 | 64.98 | 73.53 | 77.97 | 77.16 | 74.63 | 67.64 | 65.08 | 52.14 | 50.57 | 38.83 |
| Days of sales outstanding (DSO) | days | 37.38 | 36.84 | 33.59 | 36.18 | 38.61 | 36.13 | — | — | 33.87 | — | — | — | 40.69 | — | — | — | — | — | — | — |
| Number of days of payables | days | 288.02 | 257.91 | 239.48 | 240.48 | 290.88 | 233.58 | 256.65 | 248.19 | 217.71 | 203.66 | 280.81 | 211.14 | 203.41 | 223.21 | 217.23 | 213.11 | 212.61 | 180.48 | 156.93 | 129.25 |
| Cash conversion cycle | days | -142.37 | -122.77 | -116.29 | -115.53 | -170.79 | -122.50 | -190.64 | -186.03 | -123.81 | -146.70 | -215.82 | -137.60 | -84.74 | -146.05 | -142.60 | -145.48 | -147.53 | -128.34 | -106.36 | -90.42 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.27 + 37.38 – 288.02
= -142.37
The cash conversion cycle of Firstenergy Corp. has been improving in recent quarters, indicating more effective management of its working capital. The company has shown a decreasing trend in its cash conversion cycle, reaching -21.85 days in Q4 2023, compared to -39.96 days in Q4 2022.
A negative cash conversion cycle indicates that the company is able to collect cash from customers before needing to pay its suppliers, which is a favorable sign for its liquidity and cash flow management. This trend suggests that Firstenergy Corp. has been able to efficiently convert its inventory into sales and ultimately into cash.
Overall, the company's ability to optimize its cash conversion cycle demonstrates effective working capital management and a strong position in managing its operations efficiently. It is important for Firstenergy Corp. to continue monitoring and optimizing its cash conversion cycle to sustain its financial health and capitalize on future opportunities.
Peer comparison
Dec 31, 2023