PPL Corporation (PPL)
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 | 236.99 | 245.39 | 240.78 | 233.07 | 249.42 | 220.99 | 197.95 | 156.84 | 158.06 | 158.96 | 135.09 | 129.37 | 155.67 | 152.00 | 135.85 | 145.11 | 172.23 | 199.87 | 184.72 | 169.77 |
| Days of sales outstanding (DSO) | days | 44.73 | 44.07 | 46.05 | 56.52 | 53.62 | 45.48 | 44.20 | 49.35 | 48.32 | 47.62 | 48.87 | 40.25 | 40.46 | 41.91 | 43.22 | 46.91 | 58.74 | 50.02 | 42.70 | 42.85 |
| Number of days of payables | days | 554.69 | 436.67 | 470.04 | 441.22 | 545.28 | 533.46 | 407.18 | 409.45 | 428.51 | 364.62 | 400.81 | 316.95 | 328.26 | 317.50 | 350.13 | 368.35 | 424.88 | 491.98 | 445.99 | 441.93 |
| Cash conversion cycle | days | -272.96 | -147.21 | -183.21 | -151.63 | -242.24 | -266.99 | -165.02 | -203.26 | -222.13 | -158.04 | -216.84 | -147.33 | -132.13 | -123.59 | -171.06 | -176.33 | -193.90 | -242.10 | -218.57 | -229.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 236.99 + 44.73 – 554.69
= -272.96
The cash conversion cycle of PPL Corporation has been fluctuating over the past few years, with values ranging from negative 123.59 days to negative 272.96 days. A negative cash conversion cycle indicates that the company is able to collect cash from its sales and convert it back to cash used in its operations relatively quickly.
In the most recent period, as of December 31, 2024, the cash conversion cycle was reported as negative 272.96 days, which suggests that PPL Corporation is efficient in managing its working capital and converting its investment in inventory and receivables back into cash quickly.
Overall, the trend in the cash conversion cycle for PPL Corporation indicates a general efficiency in its cash management and working capital processes. However, it is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure that it remains efficient and effective in the long term.
Peer comparison
Dec 31, 2024