PPL Corporation (PPL)

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	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	168.54	134.43	128.40	74.63
Days of sales outstanding (DSO)	days	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	37.21	34.69	36.63	40.24
Number of days of payables	days	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	485.31	385.51	372.63	224.18
Cash conversion cycle	days	-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	-279.56	-216.39	-207.60	-109.31

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 249.42 + 53.62 – 545.28
= -242.24

The cash conversion cycle of PPL Corp has fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -12.53 days, indicating that it takes a negative number of days for PPL Corp to convert its investments in inventory and accounts payable into cash receipts from customers. This suggests efficient management of working capital and quick turnover of assets.

However, in Q2 2022, the cash conversion cycle was at its lowest point, with -59.40 days, indicating an even faster conversion of investments into cash. This implies that PPL Corp was able to efficiently manage its working capital and generate cash flows from its operations in a shorter amount of time.

Overall, despite fluctuations in the cash conversion cycle, the company has demonstrated effective working capital management and the ability to quickly convert investments into cash.