Southwest Gas Holdings Inc (SWX)
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 | — | 6.90 | 201.38 | 37.16 | 0.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 6.90 | 201.38 | 37.16 | 0.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Southwest Gas Holdings Inc experienced fluctuating trends over the years. In 2020, the company had a very short cash conversion cycle of 0.30 days, indicating efficient management of cash flow, inventory, and receivables. However, there was a significant increase in the cash conversion cycle to 37.16 days in 2021, suggesting potential delays in receiving payments or managing inventory levels.
This trend worsened in 2022, with the cash conversion cycle soaring to 201.38 days, signaling significant challenges in converting inventory into cash quickly. The company managed to improve its cash conversion cycle significantly in 2023 to 6.90 days, indicating a more efficient cash management process.
Remarkably, Southwest Gas Holdings Inc achieved a cash conversion cycle of 0.00 days in 2024, suggesting an optimal management of cash flow, receivables, and inventory. Overall, the company experienced fluctuations in its cash conversion cycle, highlighting the importance of effective working capital management and operational efficiency.
Peer comparison
Dec 31, 2024