Public Service Enterprise Group Inc (PEG)
Cash conversion cycle
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.75 | 67.03 | 65.21 | 59.14 | 51.85 | 51.16 | 46.09 | 40.61 | 24.15 | 23.54 | 24.25 | 24.87 | 47.77 | 72.46 | 71.89 | 73.64 | 75.00 | 74.02 | 70.47 | 63.90 |
| Days of sales outstanding (DSO) | days | 80.31 | 57.00 | 62.08 | 56.39 | 49.30 | 51.03 | 61.43 | 87.34 | 72.50 | 86.80 | 77.18 | 78.28 | 65.05 | 62.17 | 62.77 | 64.69 | 59.43 | 60.19 | 53.66 | 56.98 |
| Number of days of payables | days | 88.83 | 82.84 | 77.46 | 94.60 | 84.66 | 83.28 | 74.59 | 95.57 | 57.10 | 59.03 | 49.22 | 73.00 | 124.26 | 135.68 | 116.16 | 163.20 | 164.31 | 140.72 | 138.80 | 147.83 |
| Cash conversion cycle | days | 61.23 | 41.19 | 49.83 | 20.93 | 16.50 | 18.91 | 32.93 | 32.37 | 39.55 | 51.30 | 52.21 | 30.15 | -11.44 | -1.05 | 18.50 | -24.87 | -29.88 | -6.51 | -14.68 | -26.95 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.75 + 80.31 – 88.83
= 61.23
The cash conversion cycle of Public Service Enterprise Group Inc has shown fluctuations over the provided periods.
The company experienced negative cash conversion cycles in several quarters, including at the end of 2019, the first and second quarters of 2020, and the third quarter of 2020. This indicates that the company was able to collect cash from its customers before needing to pay its suppliers and vendors.
However, the cycle turned positive in the first quarter of 2021, indicating a shift where the company needed to pay its suppliers before receiving cash from its customers. This trend continued through the second and third quarters of 2021, signaling potential challenges in managing working capital efficiently.
In the most recent data as of December 31, 2024, the cash conversion cycle has extended to 61.23 days, indicating a significant increase in the amount of time it takes for the company to convert its investments in inventory and other resources into cash from sales. This may suggest potential liquidity concerns and could impact the company's overall financial health.
Overall, monitoring the cash conversion cycle is important for understanding how efficiently the company is managing its working capital and generating cash flow. The recent trend towards a longer cash conversion cycle warrants further investigation to address any underlying issues and improve the company's financial performance.
Peer comparison
Dec 31, 2024