Public Service Enterprise Group Inc (PEG)

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	59.13	40.42	22.37	71.66	62.87
Days of sales outstanding (DSO)	days	56.39	87.34	78.28	64.69	56.98
Number of days of payables	days	94.58	95.14	65.65	158.83	145.44
Cash conversion cycle	days	20.94	32.62	34.99	-22.47	-25.59

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.13 + 56.39 – 94.58
= 20.94

The cash conversion cycle of Public Service Enterprise Group Inc. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle improved to 35.00 days compared to 59.09 days in 2022, indicating that it took the company 35.00 days on average to convert its investments in inventory and other resources into cash received from customers. This improvement suggests a more efficient management of working capital in 2023.

In 2021, the cash conversion cycle was 18.71 days, which was higher compared to 10.47 days in 2020 and 7.08 days in 2019. This increase could indicate a lengthening of the time it takes for the company to convert its resources into cash, potentially resulting from changes in inventory management or payment terms with customers and suppliers.

Overall, the trend in Public Service Enterprise Group Inc.'s cash conversion cycle shows some variability, with fluctuations over the years. It is important for the company to closely monitor and manage its working capital to ensure efficient operations and financial performance.