OGE Energy Corporation (OGE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.14 | 36.91 | 17.77 | 5.60 | 6.95 |
| Days of sales outstanding (DSO) | days | 38.54 | 40.90 | 37.30 | 22.97 | 40.16 |
| Number of days of payables | days | 64.19 | 64.37 | 73.31 | 37.78 | 47.87 |
| Cash conversion cycle | days | 5.49 | 13.45 | -18.24 | -9.22 | -0.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.14 + 38.54 – 64.19
= 5.49
The cash conversion cycle of OGE Energy Corporation has exhibited significant fluctuations over the years. At the end of December 2020, the company's cash conversion cycle was negative, indicating that it was able to collect cash from its operations before needing to pay suppliers. This continued into December 2021 and 2022, with even lower negative values, suggesting a strong ability to efficiently manage cash flow.
However, by the end of December 2023, the cash conversion cycle turned positive, indicating a period where the company's cash outflows exceeded its cash inflows from operations. This reversal may suggest potential challenges in managing working capital efficiently during that period.
Subsequently, by December 2024, the cash conversion cycle improved but remained positive, indicating that the company was still taking longer to convert its investments in inventory and receivables into cash. Overall, the trend indicates a mixed performance in terms of cash conversion efficiency over the analyzed period.
Peer comparison
Dec 31, 2024