Quanta Services Inc (PWR)
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 | 4.71 | 3.57 | 2.59 | 2.80 | 1.93 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 4.71 | 3.57 | 2.59 | 2.80 | 1.93 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.71 + — – —
= 4.71
The cash conversion cycle of Quanta Services Inc has shown a slight increase over the years, indicating a longer period required to convert its investments in inventory and other resources into cash.
As of December 31, 2020, the cash conversion cycle stood at 1.93 days, reflecting a relatively efficient cycle. However, by December 31, 2024, the cycle had extended to 4.71 days, signifying a longer operating cycle and potentially reduced liquidity.
Overall, the trend suggests a need for Quanta Services Inc to carefully manage its working capital components to improve efficiency and optimize cash flow in the coming years.
Peer comparison
Dec 31, 2024