PG&E Corp (PCG)

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	21.67	26.86	29.18	21.89	70.52	—	—	—	46.82	11.40	3.49	0.86	3.60	3.64	5.45	10.18	109.27	49.69	31.53	51.33
Days of sales outstanding (DSO)	days	30.60	34.93	34.54	42.43	44.53	46.16	37.18	34.95	41.47	31.60	34.81	35.01	37.21	36.33	29.22	27.87	27.42	31.70	28.69	28.98
Number of days of payables	days	1,053.33	1,421.75	1,666.37	1,979.50	2,840.96	—	—	—	3,760.67	812.94	230.35	143.71	113.10	134.42	246.64	337.23	2,838.89	833.00	534.76	618.08
Cash conversion cycle	days	-1,001.07	-1,359.96	-1,602.65	-1,915.18	-2,725.90	46.16	37.18	34.95	-3,672.38	-769.95	-192.04	-107.85	-72.28	-94.46	-211.97	-299.17	-2,702.19	-751.61	-474.54	-537.77

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 exhibited significant fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -42.92 days, indicating a negative cycle where it takes less time to convert inventory into cash compared to paying off accounts payable. This was a sharp contrast to the previous quarter in Q3 2023, where the company had a positive cycle of 15.93 days.

Looking further back, in Q2 2023, PG&E Corp. experienced an extended cash conversion cycle of 56.25 days, suggesting a delay in converting inventory into cash and paying off accounts payable. The trend continued from the previous quarter in Q1 2023, where the cycle was 49.47 days.

Comparing the recent quarters to the same period in the previous year, there has been a noticeable improvement in the cash conversion cycle. In Q4 2022, the company had a significantly negative cycle of -63.49 days, indicating more efficiency in managing cash flows compared to Q4 2023.

Overall, the cash conversion cycle of PG&E Corp. has been volatile, showing fluctuations from negative to positive cycles. It is essential for the company to closely monitor and manage this cycle to ensure efficient operations and cash flow management.