AAON Inc (AAON)
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 | 85.14 | 101.29 | 111.50 | 119.86 | 83.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 85.14 | 101.29 | 111.50 | 119.86 | 83.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.14 + — – —
= 85.14
The cash conversion cycle of AAON Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 83.66 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows.
Subsequently, by December 31, 2021, the cash conversion cycle extended to 119.86 days, reflecting a significant increase in the time it takes for AAON Inc to generate cash from its operating activities. However, in the following years, there was a gradual improvement in the efficiency of AAON Inc's cash conversion cycle.
As of December 31, 2022, the cash conversion cycle decreased to 111.50 days, suggesting the company was able to manage its inventory and receivables more effectively. By the end of December 31, 2023, the cycle further improved to 101.29 days, indicating continued progress in optimizing the cash conversion process.
The most recent data available as of December 31, 2024, shows a cash conversion cycle of 85.14 days, suggesting AAON Inc has managed to streamline its cash conversion activities even further, potentially enhancing its liquidity position and operational efficiency. Monitoring the trend of the cash conversion cycle can provide valuable insights into the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2024