Vistra Energy Corp (VST)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	189.01	173.39	175.24	166.49	156.43	169.97	180.85	162.95	187.26	147.82	123.70	123.52	128.22	127.70	170.38	165.44	173.97	177.95	209.58	152.26
Days of sales outstanding (DSO)	days	56.66	65.01	53.07	47.65	71.60	67.64	80.86	51.70	55.55	64.55	56.59	55.34	55.72	56.74	56.09	46.25	57.46	59.80	46.60	41.34
Number of days of payables	days	292.97	284.51	278.93	266.01	427.02	402.74	442.93	383.21	465.08	367.82	274.39	298.61	219.10	225.49	276.82	258.78	351.28	379.07	344.31	276.74
Cash conversion cycle	days	-47.30	-46.11	-50.62	-51.87	-198.99	-165.13	-181.23	-168.55	-222.27	-155.46	-94.09	-119.75	-35.15	-41.05	-50.36	-47.10	-119.85	-141.32	-88.12	-83.14

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 189.01 + 56.66 – 292.97
= -47.30

The cash conversion cycle of Vistra Corp has shown fluctuation over the past eight quarters. In Q1 2022, the company had a negative cash conversion cycle of -0.75 days, indicating efficient management of cash flows. However, the cycle turned positive in subsequent quarters, with Q3 2022 and Q4 2022 showing improvements.

From Q1 2023 to Q3 2023, the cash conversion cycle increased gradually, peaking at 28.88 days in Q3 2023. This increase suggests that Vistra Corp took longer to convert its investments in inventory and other resources into cash during these quarters.

In Q4 2023, the cash conversion cycle decreased to 21.83 days, indicating an improvement in cash management efficiency compared to the previous quarter. Overall, Vistra Corp should continue to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and improve overall financial performance.