NRG Energy Inc. (NRG)
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 | 7.26 | 7.93 | 9.46 | 9.00 | 8.57 | 7.93 | 8.24 | 8.42 | 9.99 | 11.00 | 10.26 | 6.96 | 8.87 | 10.74 | 9.89 | 9.65 | 18.25 | 18.31 | 21.14 | 19.10 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 7.26 | 7.93 | 9.46 | 9.00 | 8.57 | 7.93 | 8.24 | 8.42 | 9.99 | 11.00 | 10.26 | 6.96 | 8.87 | 10.74 | 9.89 | 9.65 | 18.25 | 18.31 | 21.14 | 19.10 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.26 + — – —
= 7.26
The cash conversion cycle of NRG Energy Inc. has shown fluctuations over the quarters analyzed. From March 2020 to June 2020, the cycle increased from 19.10 days to 21.14 days, indicating a longer time taken to convert resources into cash. However, from September 2020 to March 2021, there was a significant improvement in the cycle, dropping to single-digit days, demonstrating efficiency in managing cash flow.
The trend continued positively until June 2022, where the cycle increased to 10.26 days. Subsequently, there were fluctuations, with occasional decreases and increases in the cycle. Notably, by December 2024, the cycle decreased to 7.26 days, showing a more efficient conversion of investment in resources to cash.
Overall, the cash conversion cycle of NRG Energy Inc. has displayed variations over the quarters, with periods of improvement and some fluctuations. The company's ability to manage its cash conversion cycle effectively is essential for its operations and financial performance.
Peer comparison
Dec 31, 2024