FirstEnergy Corporation (FE)
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 | 27.99 | 27.22 | 26.86 | 34.13 | 40.22 | 35.98 | 33.60 | 34.50 | 33.46 | 31.36 | 28.52 | 27.50 | 27.55 | 27.19 | 31.75 | 35.52 | 37.69 | 35.12 | 33.99 | 31.48 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 27.99 | 27.22 | 26.86 | 34.13 | 40.22 | 35.98 | 33.60 | 34.50 | 33.46 | 31.36 | 28.52 | 27.50 | 27.55 | 27.19 | 31.75 | 35.52 | 37.69 | 35.12 | 33.99 | 31.48 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.99 + — – —
= 27.99
The cash conversion cycle of FirstEnergy Corporation has shown some fluctuations over the reporting periods. The trend indicates that the company took an average of 31.48 days to convert its investments in inventory into cash receipts from customers as of March 31, 2020. This increased to 37.69 days by the end of December 31, 2020, which may suggest a delay in receiving cash from sales.
Subsequently, there was a decrease in the cash conversion cycle to 27.19 days by September 30, 2021, indicating an improvement in the company's efficiency in managing its cash flow. This trend continued until June 30, 2022, where the cash conversion cycle remained relatively stable at around 28 days.
However, by December 31, 2023, the cash conversion cycle increased significantly to 40.22 days, signaling potential challenges in converting inventory to cash efficiently. Notably, improvements were seen in the next reporting periods, with the cycle decreasing to 27.99 days by December 31, 2024.
Overall, fluctuations in the cash conversion cycle can impact a company's liquidity and operational efficiency. FirstEnergy Corporation should focus on managing its inventory levels and cash collection processes to optimize its cash conversion cycle and enhance its financial performance.
Peer comparison
Dec 31, 2024