Portland General Electric Co (POR)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.75 | 19.98 | 21.61 | 24.64 | 30.30 | 33.40 | 34.52 | 31.81 | 35.10 | 36.26 | 41.81 | 30.74 | 34.64 | 35.69 | 33.76 | 33.78 | 37.12 | 43.66 | 67.20 | 60.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 19.75 | 19.98 | 21.61 | 24.64 | 30.30 | 33.40 | 34.52 | 31.81 | 35.10 | 36.26 | 41.81 | 30.74 | 34.64 | 35.69 | 33.76 | 33.78 | 37.12 | 43.66 | 67.20 | 60.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.75 + — – —
= 19.75
The cash conversion cycle of Portland General Electric Co has exhibited fluctuations over the past few years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the company's cash conversion cycle has shown a downward trend, indicating improvements in managing its working capital. The cycle decreased from 60.21 days on March 31, 2020, to 19.75 days on December 31, 2024. This suggests that Portland General Electric Co has been able to optimize its operations to generate cash more efficiently.
Despite some fluctuations in the middle years, such as a peak of 67.20 days on June 30, 2020, and an increase to 41.81 days on June 30, 2022, the overall trend has been positive, with the company consistently reducing the time it takes to convert its investments into cash.
The company's ability to manage its cash conversion cycle effectively is crucial for maintaining liquidity and financial stability. The decreasing trend indicates that Portland General Electric Co has been successful in streamlining its operations, improving inventory management, and enhancing its receivables collection process.
Overall, the decreasing cash conversion cycle trend reflects positively on the company's financial management practices and efficiency in generating cash flows from its core business activities.
Peer comparison
Dec 31, 2024