WEC Energy Group Inc (WEC)
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 | 61.66 | 53.47 | 46.78 | 43.65 | 44.34 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 61.66 | 53.47 | 46.78 | 43.65 | 44.34 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 61.66 + — – —
= 61.66
The cash conversion cycle of WEC Energy Group Inc has shown a fluctuating trend over the past five years. Starting at 44.34 days on December 31, 2020, the cycle slightly improved to 43.65 days by December 31, 2021. However, there was a notable increase to 46.78 days by December 31, 2022, and a further rise to 53.47 days by December 31, 2023. The cycle reached its peak at 61.66 days on December 31, 2024.
This indicates that the company may be taking longer to convert its investments in inventory into cash during the latter years, which could be a concern for its working capital management. Further analysis of the company's inventory turnover, accounts receivable turnover, and accounts payable turnover ratios would provide more insights into the factors contributing to these changes in the cash conversion cycle.
Peer comparison
Dec 31, 2024