NorthWestern Corporation (NWE)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 321.96 | 336.53 | 332.26 |
| Days of sales outstanding (DSO) | days | 68.22 | 35.17 | 37.06 |
| Number of days of payables | days | 292.77 | 259.52 | 263.77 |
| Cash conversion cycle | days | 97.41 | 112.18 | 105.56 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 321.96 + 68.22 – 292.77
= 97.41
The cash conversion cycle of NorthWestern Corporation has shown some fluctuations over the periods reported.
As of June 30, 2024, the company's cash conversion cycle was 105.56 days. This suggests that NorthWestern Corporation takes approximately 105.56 days to convert its investments in inventory and accounts receivable back into cash.
By September 30, 2024, the cash conversion cycle increased to 112.18 days, indicating a slight delay in the company's conversion of resources into cash.
However, by December 31, 2024, there was an improvement in the cash conversion cycle, which decreased to 97.41 days. This reduction may suggest that NorthWestern Corporation was able to optimize its inventory management and accounts receivable collection processes during this period.
Overall, while the company experienced some variability in its cash conversion cycle, it is essential for NorthWestern Corporation to continue monitoring and managing its working capital efficiently to ensure optimal cash flow and operational performance.
Peer comparison
Dec 31, 2024