Portland General Electric Co (POR)

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	96.59	82.17	69.27	72.60	95.74
Days of sales outstanding (DSO)	days	68.93	72.94	67.94	62.62	28.71
Number of days of payables	days	—	395.27	216.69	154.27	164.55
Cash conversion cycle	days	165.52	-240.16	-79.48	-19.05	-40.10

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.59 + 68.93 – —
= 165.52

The cash conversion cycle of Portland General Electric Co has fluctuated significantly over the past five years. It experienced a negative cycle in both 2023 and 2021, indicating that it is able to convert its inventory into cash quickly while delaying payment to suppliers. In contrast, the company had a notably extended cycle in 2022, reflecting a delay in either collecting receivables or managing inventory efficiently. The positive cycle in 2020 suggests that the company took longer to convert its investments in inventory into cash. Overall, the company has shown variability in its cash conversion efficiency over the years, highlighting the importance of closely monitoring working capital management practices.