WEC Energy Group Inc (WEC)
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 | 54.83 | 55.22 | 48.49 | 44.83 | 55.89 | 47.25 | 37.05 | 30.32 | 46.78 | 55.98 | 35.99 | 24.89 | 43.65 | 46.84 | 33.19 | 26.30 | 44.34 | 47.74 | 38.66 | 31.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 54.83 | 55.22 | 48.49 | 44.83 | 55.89 | 47.25 | 37.05 | 30.32 | 46.78 | 55.98 | 35.99 | 24.89 | 43.65 | 46.84 | 33.19 | 26.30 | 44.34 | 47.74 | 38.66 | 31.77 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.83 + — – —
= 54.83
The cash conversion cycle of WEC Energy Group Inc has shown fluctuations over the periods analyzed. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The trend indicates that the company's cash conversion cycle initially decreased from March 31, 2020, to March 31, 2022, suggesting improved efficiency in managing working capital. However, from June 30, 2022, the cash conversion cycle started increasing, indicating a potential slowdown in the company's ability to convert resources into cash.
The cash conversion cycle peaked at 55.98 days on September 30, 2022, and remained relatively high in subsequent periods, indicating a need for closer monitoring of working capital management. The company should focus on optimizing its inventory levels, accounts receivable collections, and payables schedule to improve its cash conversion efficiency.
Analyzing the cash conversion cycle can help identify opportunities to streamline operations, enhance liquidity, and potentially improve overall financial performance. It is essential for WEC Energy Group Inc to proactively manage its working capital components to maintain a healthy cash conversion cycle and ensure efficient utilization of resources.
Peer comparison
Dec 31, 2024