Alliant Energy Corp (LNT)

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	89.81	85.68	79.86	74.21	86.21	80.84	65.57	51.12	68.39	61.11	59.36	61.11	66.45	69.30	69.74	67.46	58.97	50.81	41.26	30.37
Days of sales outstanding (DSO)	days	51.48	43.58	37.70	37.26	54.78	45.94	45.30	45.83	52.83	40.19	39.82	34.87	52.78	51.42	48.66	48.42	40.24	45.26	42.98	42.31
Number of days of payables	days	159.98	158.26	153.17	136.32	200.54	212.51	159.55	105.83	121.20	101.20	111.87	91.96	115.44	129.58	135.18	114.80	109.47	112.85	84.70	70.10
Cash conversion cycle	days	-18.69	-29.00	-35.62	-24.85	-59.54	-85.73	-48.68	-8.88	0.01	0.10	-12.69	4.02	3.79	-8.86	-16.77	1.09	-10.27	-16.77	-0.46	2.59

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 shown variability over the past eight quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle improved to -17.40 days compared to the previous quarter, indicating that the company was able to convert its resources into cash more efficiently. This improvement was consistent with the trend seen in Q2 and Q3 2023, where the cycle was -20.49 days and -16.23 days respectively.

The company's efficiency in managing its working capital is evident in these strong negative figures, suggesting that Alliant Energy Corp. is able to quickly turn its investments into revenue. However, it is worth noting that the cash conversion cycle in Q1 2023 was a bit longer at -10.73 days, indicating a temporary slowdown in the conversion of resources into cash flows.

Comparing these results to previous quarters, it is noteworthy that Alliant Energy Corp. experienced a significant improvement in its cash conversion cycle compared to Q4 2022, where the cycle was -43.00 days. This signifies that the company has enhanced its working capital management strategies over the past year.

Overall, with the positive cash conversion cycle figures in recent quarters, Alliant Energy Corp. appears to be efficiently managing its working capital to convert investments into cash flows swiftly, which can be a positive indicator of financial health and operational efficiency.