PG&E Corp (PCG)
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 | 19.33 | 21.67 | 70.52 | 46.82 | 115.58 |
| Days of sales outstanding (DSO) | days | 59.71 | 30.60 | 44.53 | 41.47 | 37.21 |
| Number of days of payables | days | 1,299.43 | 1,053.33 | 2,840.96 | 3,760.67 | 3,628.10 |
| Cash conversion cycle | days | -1,220.39 | -1,001.07 | -2,725.90 | -3,672.38 | -3,475.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.33 + 59.71 – 1,299.43
= -1,220.39
The cash conversion cycle of PG&E Corp has experienced fluctuations over the years. As of December 31, 2020, the company had a negative cash conversion cycle of -3,475.30 days, indicating that it was able to convert its inventory and accounts receivable into cash quickly. This trend continued in 2021 with a similar negative cycle of -3,672.38 days.
However, there was a significant improvement in the cash conversion cycle by the end of 2022, with a decrease to -2,725.90 days. This suggests that PG&E Corp was able to manage its working capital more efficiently, further enhancing its ability to generate cash.
By December 31, 2023, the cash conversion cycle experienced a drastic reduction to -1,001.07 days, indicating a substantial improvement in the company's liquidity and cash flow management. This trend continued in 2024 with a cycle of -1,220.39 days.
Overall, PG&E Corp has shown a consistent ability to convert its operating cycle components into cash at a rapid pace, reflecting strong operational efficiency and effective management of its working capital.
Peer comparison
Dec 31, 2024