PG&E Corp (PCG)
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 | 19.33 | 23.65 | 21.81 | 15.65 | 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 |
| Days of sales outstanding (DSO) | days | 59.71 | 57.20 | 29.20 | 32.74 | 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 |
| Number of days of payables | days | 1,299.43 | 1,454.90 | 1,186.15 | 1,064.05 | 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 |
| Cash conversion cycle | days | -1,220.39 | -1,374.05 | -1,135.14 | -1,015.66 | -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 |
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 for PG&E Corp has shown significant fluctuations over the periods analyzed. The company had negative cash conversion days, indicating that it took less time to convert its investments in inventory and other resources into cash during these periods. However, this trend shifted dramatically in the later periods, with the cash conversion cycle turning positive, which suggests a potential increase in the time it takes for the company to convert its investments back into cash.
The cash conversion cycle reached its peak at -3,672.38 days on December 31, 2021, reflecting a substantial delay in converting investments to cash. This negative figure indicates that the company may have been holding onto cash longer than typical, leading to a potential inefficiency in its working capital management.
Subsequently, there was a significant improvement in the cash conversion cycle, with the trend becoming more positive, reaching 46.16 days on September 30, 2022. This shift suggests a more efficient management of working capital, likely resulting in quicker cash flow generation.
Overall, analyzing the cash conversion cycle provides insights into PG&E Corp's ability to manage its working capital effectively and convert investments into cash. Monitoring this metric over time can help evaluate the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024