Quanta Services Inc (PWR)
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 | 4.67 | 5.05 | 4.49 | 4.41 | 3.56 | 3.58 | 3.64 | 3.88 | 2.59 | 2.54 | 2.67 | 2.84 | 2.80 | 2.23 | 2.31 | 1.97 | 1.93 | 1.49 | 1.74 | 1.75 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 4.67 | 5.05 | 4.49 | 4.41 | 3.56 | 3.58 | 3.64 | 3.88 | 2.59 | 2.54 | 2.67 | 2.84 | 2.80 | 2.23 | 2.31 | 1.97 | 1.93 | 1.49 | 1.74 | 1.75 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.67 + — – —
= 4.67
The cash conversion cycle of Quanta Services Inc has shown fluctuations over the periods analyzed. The cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle increased gradually, indicating potential issues with managing working capital efficiently. The cycle ranged from a low of 1.49 days on September 30, 2020, to a high of 5.05 days on September 30, 2024.
A longer cash conversion cycle suggests that the company is taking more time to generate cash from its operating activities, which may imply inefficiencies in inventory management, collection of receivables, or payment of payables. It is essential for Quanta Services Inc to closely monitor and improve its working capital management practices to optimize its cash conversion cycle and enhance overall financial performance.
Peer comparison
Dec 31, 2024