Alcoa Corp (AA)
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 | 72.61 | 78.43 | 73.33 | 76.18 | 80.27 | 80.06 | 86.03 | 83.77 | 86.75 | 87.61 | 96.65 | 100.72 | 78.00 | 71.05 | 66.74 | 62.80 | 64.03 | 63.44 | 63.75 | 65.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 72.61 | 78.43 | 73.33 | 76.18 | 80.27 | 80.06 | 86.03 | 83.77 | 86.75 | 87.61 | 96.65 | 100.72 | 78.00 | 71.05 | 66.74 | 62.80 | 64.03 | 63.44 | 63.75 | 65.71 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.61 + — – —
= 72.61
The cash conversion cycle of Alcoa Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash from sales.
Initially, from March 2020 to June 2021, the cash conversion cycle demonstrated a decreasing trend, indicating an improvement in the efficiency of Alcoa Corp's operations in managing its cash resources. However, from September 2021 onwards, the cash conversion cycle started to increase, reaching its peak at 100.72 days on March 31, 2022.
Subsequently, the cash conversion cycle decreased in the following quarters, signaling an enhancement in the company's ability to convert its resources into cash more efficiently. By December 31, 2024, the cash conversion cycle had decreased to 72.61 days, indicating a positive trend in managing working capital and cash flow.
Overall, fluctuations in the cash conversion cycle of Alcoa Corp reflect changes in the efficiency of its operations, inventory management, and accounts receivable. A lower cash conversion cycle suggests that the company is able to generate cash more quickly from its operational activities, which can have positive implications for liquidity and financial performance.
Peer comparison
Dec 31, 2024