Xcel Energy Inc (XEL)

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	282.70	234.47	212.60	189.70	266.21	317.87	240.47	192.81	243.20	214.68	182.14	173.26	200.69	227.90	222.75	223.21	248.20	42.90	38.12	29.26
Days of sales outstanding (DSO)	days	33.79	30.05	26.61	30.34	32.73	29.88	28.27	31.84	27.67	28.64	27.16	28.56	29.01	28.84	26.02	27.34	26.50	25.81	23.10	30.32
Number of days of payables	days	663.20	492.46	444.60	437.61	598.06	579.47	592.80	479.92	543.07	482.40	463.72	448.12	464.03	713.09	543.38	455.56	590.39	99.22	83.42	75.88
Cash conversion cycle	days	-346.72	-227.93	-205.38	-217.57	-299.12	-231.73	-324.06	-255.27	-272.20	-239.07	-254.42	-246.30	-234.33	-456.34	-294.61	-205.01	-315.69	-30.50	-22.20	-16.30

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 282.70 + 33.79 – 663.20
= -346.72

The cash conversion cycle of Xcel Energy, Inc. has exhibited variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was negative at -4.70 days, indicating that it was able to convert its inventory into cash at a faster rate than paying its suppliers. This was a significant improvement from the previous quarter in Q3 2023 when the cash conversion cycle was 5.42 days.

In Q2 2023 and Q1 2023, the cash conversion cycle increased to 8.27 days and 9.66 days respectively, suggesting that Xcel Energy took longer to convert its investments in inventory and accounts receivable into cash during these periods. However, in comparison to Q2 and Q1 of 2022, the company showed improvement in managing its working capital as the cash conversion cycle was higher at 9.52 days and 4.97 days respectively.

Notably, in Q2 2022, Xcel Energy's cash conversion cycle was negative at -7.33 days, highlighting effective management of its working capital during that period. Overall, the fluctuation in the cash conversion cycle of Xcel Energy indicates varying efficiencies in managing its cash flows, inventory, and accounts receivable, which can impact the company's liquidity and overall financial performance.