Portland General Electric Co (POR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.44 | 26.37 | 35.10 | 34.64 | 37.12 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 22.44 | 26.37 | 35.10 | 34.64 | 37.12 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.44 + — – —
= 22.44
The cash conversion cycle of Portland General Electric Co has shown a decreasing trend over the past five years, indicating improvements in its efficiency in managing its cash flows.
As of December 31, 2020, the cash conversion cycle was 37.12 days, which decreased to 22.44 days by December 31, 2024. This signifies that the company has been able to convert its investments in inventory and receivables into cash more quickly over the years.
The decrease in the cash conversion cycle suggests that Portland General Electric Co has been managing its working capital more effectively, potentially leading to better liquidity and operational efficiency. It implies that the company is reducing the time it takes to sell inventory, collect receivables, and pay its suppliers, enhancing its cash flow management.
Overall, the decreasing trend in the cash conversion cycle reflects positively on Portland General Electric Co's ability to efficiently utilize its resources and generate cash, which is essential for sustaining and growing its operations.
Peer comparison
Dec 31, 2024