AAON Inc (AAON)
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 | 85.14 | 83.35 | 87.76 | 95.44 | 101.29 | 104.30 | 107.44 | 103.58 | 111.50 | 110.39 | 117.27 | 118.30 | 119.86 | 103.22 | 88.34 | 88.45 | 83.66 | 79.38 | 87.92 | 74.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 85.14 | 83.35 | 87.76 | 95.44 | 101.29 | 104.30 | 107.44 | 103.58 | 111.50 | 110.39 | 117.27 | 118.30 | 119.86 | 103.22 | 88.34 | 88.45 | 83.66 | 79.38 | 87.92 | 74.62 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.14 + — – —
= 85.14
The cash conversion cycle (CCC) of AAON Inc, a measure of how long it takes for the company to convert its resources into cash, has shown fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the CCC ranged from a low of 74.62 days to a high of 119.86 days. The company's CCC increased gradually from 2020 to 2021, peaking at 119.86 days in December 2021, indicating a potential issue with efficiency in converting inventory into cash.
However, from March 31, 2022, to December 31, 2024, the CCC declined steadily, reaching its lowest level of 83.35 days on September 30, 2024. This trend suggests an improvement in the company's ability to collect receivables, manage inventory, and pay suppliers more efficiently.
Overall, the fluctuating nature of AAON Inc's cash conversion cycle indicates the company's ongoing efforts to optimize its working capital management. By closely monitoring and managing this cycle, the company can enhance its liquidity position and overall financial health.
Peer comparison
Dec 31, 2024