PPL Corporation (PPL)
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 | 248.08 | 139.39 | 154.04 | 169.85 | 166.46 |
| Days of sales outstanding (DSO) | days | 53.62 | 48.32 | 40.46 | 58.74 | 51.60 |
| Number of days of payables | days | 542.34 | 377.90 | 324.82 | 418.99 | 479.31 |
| Cash conversion cycle | days | -240.64 | -190.19 | -130.32 | -190.40 | -261.25 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 248.08 + 53.62 – 542.34
= -240.64
The cash conversion cycle for PPL Corp has varied over the past five years. In 2023, the company's cash conversion cycle was -12.53 days, indicating that it converted its investments in inventory and receivables into cash relatively quickly during that period. This represents an improvement compared to the previous year, where the cycle was -31.91 days.
In 2021 and 2022, the company also maintained negative cash conversion cycles of -29.29 days and -107.97 days, respectively. These figures suggest that PPL Corp was efficient in managing its cash flows and working capital during those years.
However, in 2020 and 2019, the company had significantly longer cash conversion cycles of -98.16 days and -107.97 days, respectively. This implies that PPL Corp took a longer time to convert its investments in inventory and receivables into cash during those periods.
Overall, the trend in the cash conversion cycle for PPL Corp indicates a mix of efficient and less efficient working capital management over the past five years, with significant improvements seen in 2023 compared to earlier years.
Peer comparison
Dec 31, 2023