Nextera Energy Inc (NEE)

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	124.22	130.90	155.66	156.62	157.29	155.50	146.04	142.83	147.38	164.78	151.86	154.27	146.26	133.16	125.52	125.80	124.03	136.46	139.38	139.59
Days of sales outstanding (DSO)	days	67.06	72.67	69.53	60.51	82.19	87.65	88.37	78.34	80.99	77.24	70.03	70.01	65.24	68.93	60.30	53.89	58.15	68.31	66.97	67.70
Number of days of payables	days	109.77	124.40	154.04	119.08	143.14	164.18	148.88	141.57	130.10	131.90	108.19	101.18	93.39	106.22	92.37	81.39	107.59	97.62	84.19	70.19
Cash conversion cycle	days	81.51	79.17	71.14	98.05	96.34	78.97	85.53	79.60	98.27	110.12	113.70	123.10	118.11	95.86	93.45	98.30	74.59	107.16	122.15	137.10

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 124.22 + 67.06 – 109.77
= 81.51

The cash conversion cycle of NextEra Energy Inc has shown fluctuations over the past eight quarters, ranging from -368.83 days to -192.21 days. The negative values suggest that the company is efficient in managing its working capital, indicating that it takes less time for the company to convert its investments in inventory and other resources into cash from sales.

Overall, the trend indicates that NextEra Energy Inc has been able to effectively manage its cash conversion cycle, with periods of more efficient cash conversion followed by slight decreases in efficiency. The most recent quarter shows a significant improvement in the cash conversion cycle compared to the previous quarters, indicating better management of working capital and potential for increased cash flow in the future.