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.