Alcoa Corp (AA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.61 | 80.27 | 86.75 | 78.00 | 64.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 72.61 | 80.27 | 86.75 | 78.00 | 64.03 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.61 + — – —
= 72.61
The cash conversion cycle for Alcoa Corp has shown fluctuations over the past five years. As of December 31, 2020, it stood at 64.03 days and increased to 78.00 days by the end of 2021. Subsequently, the cycle continued to rise, reaching 86.75 days by December 31, 2022. However, there was a slight decrease to 80.27 days by the end of 2023, followed by a further decrease to 72.61 days by December 31, 2024.
Overall, the trend in Alcoa Corp's cash conversion cycle indicates some inefficiencies in managing its cash flow and working capital over the years. The company experienced prolonged periods between paying for raw materials or inventory and receiving cash from sales, impacting its liquidity and operational efficiency. Alcoa Corp should further analyze its operational processes and working capital management to streamline its cash conversion cycle and optimize its cash flow position.
Peer comparison
Dec 31, 2024