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.


Peer comparison

Dec 31, 2023