PG&E Corp (PCG)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	21.67	70.52	46.82	115.58	109.27
Days of sales outstanding (DSO)	days	30.60	44.53	41.47	37.21	27.42
Number of days of payables	days	1,053.33	2,840.96	3,760.67	3,628.10	2,838.89
Cash conversion cycle	days	-1,001.07	-2,725.90	-3,672.38	-3,475.30	-2,702.19

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.67 + 30.60 – 1,053.33
= -1,001.07

The cash conversion cycle of PG&E Corp. has shown fluctuation over the past five years. In 2023, the company's cash conversion cycle improved significantly to -42.92 days compared to -63.49 days in 2022. This indicates that PG&E Corp. has become more efficient in managing its working capital and converting resources into cash.

Looking back, the company's cash conversion cycle was notably shorter in 2019 at -15.89 days, suggesting that PG&E Corp. was able to swiftly convert its investments into cash during that period. On the other hand, in 2021 and 2020, the cash conversion cycle was longer at -97.39 days and -121.76 days respectively, implying that there were delays in the company's cash conversion process during those years.

Overall, the improvement in the cash conversion cycle in 2023 suggests that PG&E Corp. has enhanced its working capital management practices and efficiency in converting its investments into cash, which can positively impact its financial health and liquidity position.