WEC Energy Group Inc (WEC)

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	112.57	93.43	74.91	61.87	81.17	98.36	72.40	59.38	88.02	98.54	77.43	67.70	106.92	115.09	99.34	85.64	97.98	98.12	81.40	64.34
Days of sales outstanding (DSO)	days	61.70	49.14	51.73	67.86	69.16	52.21	58.81	69.97	66.09	50.06	54.29	63.90	60.62	45.87	48.47	59.22	57.08	—	—	—
Number of days of payables	days	92.16	77.09	63.18	52.58	91.39	96.92	95.80	68.54	102.80	98.33	85.85	77.67	126.11	105.36	97.75	82.35	113.49	90.91	83.52	77.34
Cash conversion cycle	days	82.11	65.48	63.45	77.15	58.93	53.65	35.42	60.81	51.31	50.28	45.87	53.93	41.44	55.60	50.06	62.51	41.57	7.21	-2.12	-13.00

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.57 + 61.70 – 92.16
= 82.11

The cash conversion cycle for WEC Energy Group Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 47.81 days from the previous quarter's 37.41 days, indicating a longer period for the company to convert its investments in inventory and other resources into cash receipts from sales.

Comparing to the same quarter in the previous year (Q4 2022), the cash conversion cycle in Q4 2023 is slightly higher, indicating a potential slowdown in the company's operating efficiency.

The highest cash conversion cycle was observed in Q1 2023 at 54.53 days, indicating prolonged cash tied up in the operating cycle. Conversely, the lowest cash conversion cycle was recorded in Q2 2022 at 16.14 days, reflecting a more efficient cash management process during that quarter.

Overall, fluctuations in the cash conversion cycle can be influenced by various factors such as changes in inventory levels, accounts receivable collection periods, and accounts payable payment terms. High or increasing cash conversion cycle figures may indicate inefficiencies in managing working capital, while lower or decreasing figures may suggest improved operational efficiency and cash flow management.