Vistra Energy Corp (VST)

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	36.50	36.50	38.30	40.11	29.17	24.40	21.90	19.22	17.27	20.39	23.96	23.99	20.75	16.04	16.88	16.71	27.67	26.83	27.93	26.29
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	36.50	36.50	38.30	40.11	29.17	24.40	21.90	19.22	17.27	20.39	23.96	23.99	20.75	16.04	16.88	16.71	27.67	26.83	27.93	26.29

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 exhibited fluctuations over the period under review. The company's cash conversion cycle, which reflects the length of time it takes to convert resources invested in inventory and accounts receivable into cash inflows from sales, ranged from a low of 16.04 days in September 2021 to a high of 40.11 days in March 2024.

Typically, a lower cash conversion cycle is desirable as it indicates the company is able to efficiently manage its working capital and convert its resources into cash quickly. In Vistra Energy Corp's case, the trend of the cash conversion cycle shows variability, with some periods of improvement followed by periods of prolonged conversion times.

It is important for the company to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and working capital management. By analyzing the components of the cash conversion cycle, such as days inventory outstanding, days sales outstanding, and days payable outstanding, Vistra Energy Corp can identify areas for improvement in its operating cycle efficiency.