EEI working capital (in thousands)

Year 2013 2014 2015

Total Current Assets 7,485,387 10,358,304 13,179,308

Less: Total Current Liabilities (6,935,078) (11,255,055) (13,935,084)

Net Working Capital 550,309 -896,751 -755,776

We can see that EEI had a conservative working capital management strategy at first but later on transferred into an
aggressive strategy to meet the increasing demands of the market.

Accounts Receivable Policies

AVERAGE COLLECTION PERIOD 2013 2014 2015
EEI 68.31 days 103.99 days 112.69 days

Inventory Policies
INVENTORY T URNOVER 2013 2014 2015
EEI 0.08 x 1.25 x 1.10 x

Accounts payable collection period

AVERAGE PAYMENT PERIOD 2013 2014 2015
EEI 59.09 days 90.37 days 106.13 days

Cash policies

Cash Conversion Cycle = Days Sales Outstanding + Days Inventory - Days Accounts Payable
= 112.69 + 331.65 - 112.91
= 331.43

EEIs Days sales outstanding in 2015 was 113~ days, its days in inventory was 332~ days and its accounts payable
collected was 113~ in 2015, resulting in a 331~ day cash conversion cycle in 2015. Despite its aggressive strategy
EEI still frequently pays its accounts payable rather than cycling its inventory account.