Nextera Energy Inc (NEE)
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 | 71.55 | 72.59 | 68.96 | 77.53 | 75.83 | 72.52 | 64.98 | 63.97 | 65.26 | 63.18 | 63.21 | 65.15 | 67.39 | 78.55 | 74.27 | 77.96 | 77.96 | 69.65 | 66.47 | 63.79 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 71.55 | 72.59 | 68.96 | 77.53 | 75.83 | 72.52 | 64.98 | 63.97 | 65.26 | 63.18 | 63.21 | 65.15 | 67.39 | 78.55 | 74.27 | 77.96 | 77.96 | 69.65 | 66.47 | 63.79 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 71.55 + — – —
= 71.55
The cash conversion cycle is a critical metric that indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Nextera Energy Inc, the cash conversion cycle has shown fluctuation over the past few years.
From March 31, 2020, to September 30, 2021, there was a steady increase in the cash conversion cycle, reaching its peak at 78.55 days. This indicates a longer period for Nextera Energy to convert its investments into cash during this period.
However, from December 31, 2021, to June 30, 2024, the cash conversion cycle fluctuated within a narrower range, indicating potential improvements in managing inventory and collecting receivables. It is noteworthy that the cycle decreased to 63.18 days on September 30, 2022, the lowest point observed during the period.
Overall, the trend in the cash conversion cycle for Nextera Energy Inc shows periods of both efficiency and inefficiency in managing cash flows from operations. It is essential for the company to continue monitoring and optimizing its working capital management to ensure efficient operations and maximize cash flow generation.
Peer comparison
Dec 31, 2024