OGE Energy Corporation (OGE)

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	36.91	26.93	21.46	21.36	17.77	14.66	16.66	14.99	5.60	21.03	25.00	6.14	38.62	40.84	45.43	45.33	13.71	11.74	13.05	12.89
Days of sales outstanding (DSO)	days	40.90	57.49	42.14	32.28	37.30	45.25	44.95	31.84	22.97	33.37	29.24	22.61	40.16	48.85	43.00	34.12	37.52	52.53	42.21	37.55
Number of days of payables	days	64.37	61.40	61.57	54.42	73.31	51.52	61.41	70.16	37.78	34.98	28.74	38.14	266.08	137.85	153.40	156.60	57.72	42.80	41.30	51.78
Cash conversion cycle	days	13.45	23.02	2.03	-0.78	-18.24	8.39	0.20	-23.32	-9.22	19.42	25.50	-9.39	-187.31	-48.16	-64.98	-77.16	-6.49	21.46	13.97	-1.35

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.91 + 40.90 – 64.37
= 13.45

The cash conversion cycle of Oge Energy Corp. has experienced fluctuations over the past eight quarters.

In Q1 2022, the company had a negative cash conversion cycle of -9.39 days, indicating that it was able to generate cash from its operational activities before needing to pay its suppliers, which is a favorable position. However, this rapid cycle was followed by an increase in the cycle in subsequent quarters.

The cash conversion cycle increased to 19.55 days in Q2 2022 and then spiked significantly to 32.10 days in Q3 2022 before decreasing slightly to 2.26 days in Q4 2022.

In 2023, the cash conversion cycle continued to fluctuate, with Q1 and Q2 showing further improvements to 32.21 days and 41.10 days, respectively. However, the cycle increased significantly to 82.52 days in Q3 and further to 95.51 days in Q4.

Overall, the fluctuating trend in the cash conversion cycle indicates potential inefficiencies in managing the company's cash flows, working capital, and operational processes. It is essential for Oge Energy Corp. to closely monitor and address these fluctuations to ensure optimal cash flow management and operational efficiency.