Vistra Energy Corp (VST)
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 | 36.50 | 29.17 | 17.27 | 20.75 | 27.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 36.50 | 29.17 | 17.27 | 20.75 | 27.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.50 + — – —
= 36.50
The cash conversion cycle of Vistra Energy Corp has shown fluctuations over the past five years. At the end of 2020, the company's cash conversion cycle was 27.66 days, indicating that it took approximately 27.66 days to convert its investments in inventory and other resources into cash flows from sales.
In 2021, the cash conversion cycle improved to 20.75 days, suggesting that Vistra Energy Corp managed its working capital more efficiently during that period. This improvement could have been due to better inventory management or faster collection of receivables.
By the end of 2022, the cash conversion cycle further decreased to 17.27 days, indicating that the company was able to convert its resources into cash even more quickly. This may have been a result of streamlined processes or optimized supply chain management.
However, in 2023, the cash conversion cycle increased to 29.17 days, which suggests that Vistra Energy Corp faced challenges in efficiently managing its working capital during that period. This could have been due to factors such as increased inventory levels or delayed collections from customers.
In the most recent year, 2024, the cash conversion cycle further increased to 36.50 days, indicating a significant delay in converting investments into cash flows. This might signal potential liquidity issues or inefficiencies in the company's operations that need to be addressed.
Overall, the fluctuations in Vistra Energy Corp's cash conversion cycle over the five-year period highlight the importance of effective working capital management in ensuring the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024