PPL Corporation (PPL)

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	235.80	248.08	139.39	154.04	169.85
Days of sales outstanding (DSO)	days	44.73	53.62	48.32	40.46	58.74
Number of days of payables	days	551.88	542.34	377.90	324.82	418.99
Cash conversion cycle	days	-271.36	-240.64	-190.19	-130.32	-190.40

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 235.80 + 44.73 – 551.88
= -271.36

The cash conversion cycle of PPL Corporation has shown fluctuations over the years based on the provided data.

As of December 31, 2020, the cash conversion cycle was -190.40 days, indicating that the company was able to convert its inventory and receivables into cash relatively quickly.

By December 31, 2021, the cash conversion cycle improved to -130.32 days, highlighting a further reduction in the time taken to convert resources into cash.

However, by December 31, 2022, the cash conversion cycle increased slightly to -190.19 days, suggesting a lengthening of the time it takes to convert resources into cash compared to the previous year.

Subsequently, by December 31, 2023, the cash conversion cycle further extended to -240.64 days, indicating a slower conversion of inventory and receivables into cash.

The trend continued with a cash conversion cycle of -271.36 days as of December 31, 2024, demonstrating a significant increase in the time taken to convert resources into cash compared to previous years.

Overall, while PPL Corporation has generally exhibited a negative cash conversion cycle in the provided years, the fluctuations observed may indicate changes in the company's efficiency in managing its working capital and converting assets into cash.