Southwest Gas Holdings Inc (SWX)
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 | — | — | 6.64 | 15.95 | 6.73 | 43.88 | 50.49 | 63.12 | 146.30 | — | 7.72 | 7.34 | 37.16 | 32.92 | 33.55 | 34.95 | 0.30 | 8.24 | 8.70 | 8.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 6.64 | 15.95 | 6.73 | 43.88 | 50.49 | 63.12 | 146.30 | 0.00 | 7.72 | 7.34 | 37.16 | 32.92 | 33.55 | 34.95 | 0.30 | 8.24 | 8.70 | 8.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle for Southwest Gas Holdings Inc fluctuated significantly over the analyzed period. From December 31, 2020, to December 31, 2024, there were periods of stable and short cash conversion cycles, followed by periods of longer and more variable cycles.
In the first half of 2021, there was a notable increase in the cash conversion cycle, peaking at 37.16 days on December 31, 2021. This prolonged cycle indicated that the company took longer to convert its investments in inventory and other resources back into cash.
However, there was a significant improvement in the cash conversion cycle during the first half of 2022, dropping to 0.00 days on September 30, 2022. This suggests that Southwest Gas Holdings Inc managed its operating cycle more efficiently during this period, swiftly converting its resources into cash.
Subsequently, from December 31, 2022, to December 31, 2024, the cash conversion cycle experienced remarkable volatility, reaching a high of 146.30 days on December 31, 2022, and then declining rapidly to 0.00 days by September 30, 2024. This erratic behavior can indicate challenges in managing working capital effectively or changes in the company's operational efficiency.
Overall, the cash conversion cycle analysis reflects fluctuations in Southwest Gas Holdings Inc's ability to manage its working capital efficiently, highlighting periods of both strength and weakness in converting resources into cash and back into investments.
Peer comparison
Dec 31, 2024