GE Vernova LLC (GEV)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.70 | 92.93 | 94.69 | — |
| Days of sales outstanding (DSO) | days | — | — | — | — |
| Number of days of payables | days | — | — | — | — |
| Cash conversion cycle | days | 91.70 | 92.93 | 94.69 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.70 + — – —
= 91.70
The cash conversion cycle of GE Vernova LLC has shown variability over the past few years. As of December 31, 2021, the company's cash conversion cycle was 0.00 days, indicating that it was able to convert its inventory and accounts receivable into cash almost instantaneously. However, there has been a significant increase in the cash conversion cycle in the subsequent years. By December 31, 2022, the cycle had extended to 94.69 days, and by December 31, 2023, it slightly decreased to 92.93 days. As of the most recent data available on December 31, 2024, the cash conversion cycle further decreased to 91.70 days.
The upward trend in the cash conversion cycle from 2021 to 2022 could indicate potential issues with inventory management or slower collection of accounts receivable during that period. However, the subsequent decreases in the cycle suggest improvements in the company's working capital management efficiency over the following years. It is essential for GE Vernova LLC to monitor and manage its cash conversion cycle effectively to ensure optimal management of its working capital and overall financial health.
Peer comparison
Dec 31, 2024