Sempra Energy (SRE)
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 | 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 | 44.86 | 43.15 | 34.47 | 30.51 |
| Days of sales outstanding (DSO) | days | 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 | 47.36 | 20.21 | 16.31 | 17.13 |
| Number of days of payables | days | 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 | 228.81 | 180.42 | 193.29 | 186.46 |
| Cash conversion cycle | days | -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 | -136.60 | -117.07 | -142.51 | -138.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.33 + 49.69 – 284.59
= -178.57
The cash conversion cycle of Sempra has displayed fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at -91.63 days, showing an increase compared to the previous quarter. This indicates that Sempra takes approximately 91.63 days to convert its investments in inventory and other resources into cash from sales and then back into cash again through collections from customers.
The trend in the cash conversion cycle suggests variability in the efficiency of Sempra's working capital management. The negative values signify that the company's operating cycle is typically shorter than its payment deferral period, allowing Sempra to generate cash quickly and efficiently from its operations.
Overall, a thorough analysis of the cash conversion cycle in relation to industry benchmarks and historical data would provide further insights into Sempra's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023