Portland General Electric Co (POR)

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 86.11 95.18 94.53 86.04 83.96 77.42 83.23 62.72 68.77 68.27 70.52 64.87 72.60 90.46 110.82 97.27 96.00 87.87 104.43 56.75
Days of sales outstanding (DSO) days 68.93 59.97 55.15 62.88 72.94 62.97 56.67 59.45 67.94 54.97 60.54 59.24 62.62 56.19 47.59 53.47 28.71 40.69 38.92 52.34
Number of days of payables days — 163.29 198.69 219.18 403.89 244.18 165.59 147.22 215.12 182.96 186.79 192.67 154.27 146.21 136.24 128.35 165.00 123.60 123.05 95.28
Cash conversion cycle days 155.04 -8.14 -49.01 -70.26 -246.98 -103.79 -25.70 -25.05 -78.41 -59.72 -55.73 -68.55 -19.05 0.44 22.18 22.38 -40.29 4.96 20.31 13.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.11 + 68.93 – —
= 155.04

The cash conversion cycle of Portland General Electric Co has shown significant fluctuations over the past eight quarters. In Q4 2023, the company had a negative cash conversion cycle of -20.08 days, indicating that it managed to convert its investments in inventory into cash before having to pay its suppliers, which is a favorable indicator. However, this improved efficiency was not sustained in the previous quarter, as the cash conversion cycle increased to 22.15 days in Q3 2023.

In Q2 2023, the cash conversion cycle was 2.00 days, suggesting that the company was able to quickly convert its inventory into receivables and then into cash. This efficiency in working capital management was further enhanced in Q1 2023, with a negative cash conversion cycle of -1.51 days, indicating a shorter time taken to convert resources into cash.

Conversely, in Q4 2022, the company experienced a significantly negative cash conversion cycle of -78.85 days, suggesting that it was able to operate with a negative working capital cycle, potentially indicating overtrading or inefficient management of working capital. This was followed by a slight improvement in Q3 2022, with a cash conversion cycle of -29.06 days.

Overall, the fluctuating cash conversion cycle of Portland General Electric Co indicates varying levels of efficiency in managing its working capital over the analyzed quarters. Investors and stakeholders should closely monitor this metric to assess the company's ability to efficiently convert its resources into cash.