Sempra Energy (SRE)
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 | 60.67 | 57.60 | 52.74 | 52.74 | 56.33 | 54.11 | 46.94 | 39.21 | 51.50 | 66.13 | 50.09 | 47.64 | 53.74 | 52.90 | 49.34 | 40.92 | 46.86 | 47.53 | 41.79 | 34.50 |
| Days of sales outstanding (DSO) | days | 57.75 | 53.18 | 44.80 | 58.19 | 49.69 | 44.91 | 44.53 | 58.09 | 70.83 | 48.22 | 65.64 | 72.55 | 61.69 | 46.10 | 47.14 | 53.46 | 54.93 | 41.44 | 40.02 | 46.82 |
| Number of days of payables | days | 265.47 | 243.37 | 227.00 | 252.05 | 284.59 | 294.33 | 248.07 | 299.39 | 289.98 | 282.41 | 241.69 | 209.23 | 255.44 | 225.13 | 212.33 | 223.27 | 230.20 | 198.73 | 226.48 | 190.93 |
| Cash conversion cycle | days | -147.06 | -132.60 | -129.46 | -141.12 | -178.57 | -195.30 | -156.60 | -202.09 | -167.65 | -168.06 | -125.96 | -89.04 | -140.01 | -126.13 | -115.86 | -128.89 | -128.41 | -109.76 | -144.68 | -109.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.67 + 57.75 – 265.47
= -147.06
The cash conversion cycle of Sempra Energy has shown fluctuations over the past few years. The company's cash conversion cycle has generally been negative, indicating that the company is efficient in managing its working capital.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from -202.09 days to -89.04 days. A negative cash conversion cycle typically means that the company is able to collect cash from its customers before needing to pay suppliers, which can be a favorable position.
The trend in the cash conversion cycle shows some variability, with periods of lower efficiency in converting cash. However, overall, Sempra Energy has managed to maintain a relatively efficient cash conversion cycle throughout the period under consideration.
It is important to note that a negative cash conversion cycle may not always be positive, as it could indicate aggressive customer payment terms or inefficient inventory management. Therefore, further analysis of other financial metrics and operational efficiency is necessary to gain a comprehensive understanding of Sempra Energy's financial health.
Peer comparison
Dec 31, 2024