TXNM Energy, Inc. (TXNM)
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 | 89.86 | 40.03 | 21.45 | 30.11 | 41.42 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 89.86 | 40.03 | 21.45 | 30.11 | 41.42 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.86 + — – —
= 89.86
TXNM Energy, Inc.'s cash conversion cycle has been fluctuating over the years. In 2020, the company's cash conversion cycle was 41.42 days, indicating that it took over a month for the company to convert its investments in inventory and other resources back into cash. Over the next few years, the company's efficiency improved significantly, with the cash conversion cycle decreasing to 30.11 days in 2021 and further dropping to 21.45 days in 2022.
However, in 2023, there was a slight increase in the cash conversion cycle to 40.03 days, which suggests a potential slowdown in the company's ability to convert its investments back into cash efficiently. This trend worsened in 2024, as the cash conversion cycle notably increased to 89.86 days, signifying a significant delay in the cash conversion process.
Overall, although TXNM Energy, Inc. demonstrated improved efficiency in converting its resources into cash in 2021 and 2022, the notable increase in the cash conversion cycle in 2023 and 2024 alerts stakeholders to potential challenges in managing liquidity and working capital effectively going forward.
Peer comparison
Dec 31, 2024