OGE Energy Corporation (OGE)
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 | 31.14 | 27.11 | 32.51 | 35.85 | 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 |
| Days of sales outstanding (DSO) | days | 38.54 | 54.75 | 44.20 | 35.48 | 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 |
| Number of days of payables | days | 64.19 | 59.26 | 57.38 | 48.11 | 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 |
| Cash conversion cycle | days | 5.49 | 22.59 | 19.33 | 23.22 | 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 |
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 fluctuated over the analyzed periods. Initially, the company had negative cash conversion cycles indicating efficient management of cash inflows and outflows. However, by the end of 2020, the cash conversion cycle increased significantly and turned positive, suggesting a delay in converting resources into cash.
Subsequently, OGE Energy Corporation managed to reduce the cash conversion cycle to negative territory again by the first quarter of 2021, implying improved efficiency in cash management. The cycle remained negative until mid-2022, signifying the company's ability to quickly convert investments into cash.
By the end of 2023, OGE Energy Corporation experienced a positive cash conversion cycle, indicating a delay in cash conversion. However, the company managed to reverse this trend by the first quarter of 2024, reducing the cycle to a more efficient level.
Overall, OGE Energy Corporation displayed variations in its cash conversion cycle, with periods of efficient cash management alternating with phases of slower cash conversion. Monitoring this cycle is crucial for assessing the company's operational efficiency and liquidity management.
Peer comparison
Dec 31, 2024