IDACORP Inc (IDA)

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	49,720.25	—	232,709.47	35,688.72	35,321.66	122,468.16	76,334.15	13,393.43	5,943.26	4,190.58	3,969.40	3,871.23	4,163.23	901.85	970.15	998.92	947.72	832.08	839.98	818.95
Days of sales outstanding (DSO)	days	51.93	50.73	47.40	40.42	52.24	55.15	51.19	40.07	47.01	48.70	55.10	37.89	44.34	51.50	51.84	38.65	42.14	45.21	45.49	43.13
Number of days of payables	days	95,589.10	—	377,932.15	59,652.53	96,428.19	246,216.48	122,930.87	16,153.02	9,075.57	5,142.57	4,520.97	3,238.17	5,197.24	867.77	698.84	566.98	919.79	597.26	592.10	636.42
Cash conversion cycle	days	-45,816.92	50.73	-145,175.29	-23,923.38	-61,054.29	-123,693.17	-46,545.53	-2,719.52	-3,085.30	-903.30	-496.47	670.95	-989.67	85.59	323.15	470.58	70.08	280.04	293.36	225.66

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 49,720.25 + 51.93 – 95,589.10
= -45,816.92

The cash conversion cycle of Idacorp, Inc. has shown significant fluctuations over the past eight quarters. In Q4 2023, the company had a negative cash conversion cycle of -52.56 days, which indicates that it was able to convert its investments in inventory and accounts receivable into cash quickly. However, this was a sharp decline from the previous quarter's performance.

In Q3 2023, the company's cash conversion cycle improved to 4.81 days, indicating a more efficient working capital management compared to the previous quarter. This trend continued in Q2 2023, with a further decrease to 3.81 days, suggesting that the company was managing its cash flow effectively.

Conversely, in Q1 2023, the cash conversion cycle increased to 4.48 days, indicating a less efficient performance in converting investments into cash compared to the previous quarter.

Looking back at Q4 2022, there was a considerable improvement with a negative cash conversion cycle of -65.78 days, suggesting strong working capital management. However, this was followed by a slight deterioration in Q3 2022, with a positive cash conversion cycle of -20.39 days.

Overall, Idacorp, Inc. has experienced fluctuations in its cash conversion cycle over the past eight quarters, indicating varying levels of efficiency in managing its working capital. It is essential for the company to monitor and analyze these patterns to ensure optimal cash flow management in the future.