Middlesex Water Company (MSEX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.42 | 20.82 | 20.59 | 22.25 | 21.93 | 46.06 | 46.72 | 48.61 | 46.64 | 47.01 | 47.45 | 45.15 | 45.32 | 46.53 | 41.90 | 46.72 | 46.21 | 45.32 | 50.61 | 50.91 |
| Days of sales outstanding (DSO) | days | 56.32 | 71.90 | 68.21 | 59.70 | 62.45 | 68.99 | 60.30 | 56.18 | 55.89 | 68.65 | 61.81 | 54.72 | 60.93 | 70.10 | 59.32 | 53.99 | 58.95 | 67.56 | 60.75 | 50.05 |
| Number of days of payables | days | 289.81 | 102.85 | 80.16 | 73.14 | 86.87 | 205.72 | 205.52 | 204.74 | 187.62 | 209.98 | 201.62 | 151.88 | 178.67 | 156.47 | 207.64 | 219.65 | 275.20 | 236.58 | 218.81 | 232.69 |
| Cash conversion cycle | days | -164.07 | -10.13 | 8.64 | 8.81 | -2.49 | -90.66 | -98.49 | -99.94 | -85.08 | -94.32 | -92.35 | -52.00 | -72.42 | -39.85 | -106.42 | -118.94 | -170.04 | -123.70 | -107.45 | -131.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.42 + 56.32 – 289.81
= -164.07
The cash conversion cycle for Middlesex Water Company has exhibited fluctuations over the periods provided. The company's cash conversion cycle measures the number of days it takes for the company to convert its investments in inventory or accounts receivables into cash flows from sales.
From March 31, 2020, to December 31, 2024, Middlesex Water Company has consistently managed to keep its cash conversion cycle in negative figures, indicating that the company efficiently manages its working capital.
However, it is important to note the variation in the magnitude of the negative days. While the cycle was relatively stable and efficient in 2020 and 2021, there were periods, particularly by the end of 2021 and the beginning of 2024, where the company experienced a brief increase in days before steadily improving the cycle again.
The significant negative figures generally imply that Middlesex Water Company has a reliable cash flow management system in place, enabling it to quickly convert its assets into cash without holding excessive working capital.
Overall, the negative values of the cash conversion cycle for Middlesex Water Company suggest efficient management of working capital and a strong liquidity position for the company.
Peer comparison
Dec 31, 2024