Public Service Enterprise Group Inc (PEG)

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	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	61.42	59.07	56.75
Days of sales outstanding (DSO)	days	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	48.77	47.11	66.31
Number of days of payables	days	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	131.96	118.65	110.30
Cash conversion cycle	days	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	-21.77	-12.47	12.77

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.14 + 56.39 – 94.60
= 20.93

The cash conversion cycle for Public Service Enterprise Group Inc. has shown some fluctuations over the past eight quarters. The company's cash conversion cycle has been on a downward trend in recent quarters, with Q2 2023 recording the lowest cycle of 30.78 days. This indicates that the company has been able to efficiently convert its investments in inventory and other resources into cash during this period.

However, in Q4 2022, the cash conversion cycle spiked to 59.09 days, indicating a longer period for the company to convert its investments into cash. This may be a point of concern as it suggests there may have been delays in collecting cash from customers or managing inventory effectively during that quarter.

Overall, the trend in the cash conversion cycle suggests that Public Service Enterprise Group Inc. has been improving its efficiency in managing its working capital and liquidity over the observed periods. Further analysis of the underlying reasons for these fluctuations would be necessary to fully assess the company's operating efficiency and financial health.