Essential Utilities's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 28.84.
Essential Utilities's Days Inventory for the
three
months ended in Mar. 2026 was 20.31.
Essential Utilities's Days Payable for the
three
months ended in Mar. 2026 was 49.28.
Therefore, Essential Utilities's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was -0.13.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Essential Utilities Cash Conversion Cycle Related Terms
Essential Utilities Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Essential Utilities's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:WTRG vs AWR, CWT, HTO: Cash Conversion Cycle Comparison
For the Utilities - Regulated Water subindustry, Essential Utilities's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Essential Utilities Cash Conversion Cycle vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Essential Utilities's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Essential Utilities (MEX:WTRG) has a Cash Conversion Cycle of -0.13 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Essential Utilities and its competitors.
Is Essential Utilities' Cash Conversion Cycle too high?
Essential Utilities' current Cash Conversion Cycle is -0.13. Overall, Essential Utilities has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Cash Conversion Cycle compare to AWR and CWT?
Essential Utilities' Cash Conversion Cycle of -0.13 can be compared against companies in the Utilities - Regulated industry. The industry median Cash Conversion Cycle is 13.94. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Utilities - Regulated company?
The median Cash Conversion Cycle among Utilities - Regulated companies is 13.94, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median Cash Conversion Cycle is 13.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Cash Conversion Cycle is -0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Essential Utilities (MEX:WTRG) has a current Cash Conversion Cycle of -0.13. The current Cash Conversion Cycle is -0.13. Essential Utilities' overall GF Score™ is 71/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Essential Utilities (MEX:WTRG), the current Cash Conversion Cycle is -0.13 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:WTRG has been successfully added to your 