Alliant Energy Corp (LNT)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	89.81	86.27	68.07	66.28	69.58
Days of sales outstanding (DSO)	days	51.48	54.77	52.83	52.78	40.23
Number of days of payables	days	159.98	200.68	120.65	115.15	129.19
Cash conversion cycle	days	-18.69	-59.64	0.25	3.91	-19.37

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.81 + 51.48 – 159.98
= -18.69

The cash conversion cycle of Alliant Energy Corp. has fluctuated over the past five years. The company had a negative cash conversion cycle in all years, indicating efficient management of its working capital.

In 2023, the cash conversion cycle improved to -17.40 days from -43.00 days in 2022, suggesting that the company was able to convert its invested cash back into cash quicker. This could be due to more efficient inventory management or faster collection of receivables.

In 2021, the cash conversion cycle was -4.49 days, the lowest among the five years, showing that the company was able to convert its investments into cash in a short period. This is a positive sign as it indicates effective management of working capital.

On the other hand, the company's cash conversion cycle was less efficient in 2020 and 2019, with values of -1.50 days and -7.86 days, respectively. This could indicate slower collections from customers or inefficiencies in managing inventory during those years.

Overall, while the cash conversion cycle of Alliant Energy Corp. has varied over the years, the company generally demonstrates a robust ability to efficiently convert its investments in inventory and receivables into cash.