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