Xcel Energy Inc (XEL)
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 | 25.28 | 22.37 | 23.44 | 24.99 | 29.03 | 27.91 | 24.17 | 21.92 | 31.02 | 35.63 | 27.71 | 22.18 | 28.18 | 27.41 | 24.12 | 23.88 | 29.76 | 28.93 | 27.64 | 27.51 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 25.28 | 22.37 | 23.44 | 24.99 | 29.03 | 27.91 | 24.17 | 21.92 | 31.02 | 35.63 | 27.71 | 22.18 | 28.18 | 27.41 | 24.12 | 23.88 | 29.76 | 28.93 | 27.64 | 27.51 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.28 + — – —
= 25.28
The cash conversion cycle of Xcel Energy Inc has fluctuated over the analyzed period from March 31, 2020, to December 31, 2024. The company's cash conversion cycle measures the time it takes for Xcel Energy to convert its resources invested in the operating cycle, comprising inventory and accounts receivable, into cash received from its operating activities.
From March 31, 2020, to March 31, 2023, there was a general downward trend in the cash conversion cycle, indicating that Xcel Energy improved its efficiency in converting its operating assets into cash during this period. This can be a positive sign of effective management of inventory and receivables to generate cash flows.
However, from September 30, 2023, to September 30, 2024, there was an increase in the cash conversion cycle, suggesting that Xcel Energy might have faced challenges in managing its working capital efficiently during this period. A longer cash conversion cycle could indicate potential liquidity constraints or inefficiencies in the company's operations.
It is important for Xcel Energy Inc to closely monitor its cash conversion cycle to ensure optimal management of working capital and liquidity. Analyzing the components of the cash conversion cycle, such as inventory turnover and accounts receivable collection period, can provide further insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024