Arcosa Inc (ACA)
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 | 63.93 | 78.67 | 63.33 | 70.92 | 65.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 63.93 | 78.67 | 63.33 | 70.92 | 65.03 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.93 + — – —
= 63.93
The cash conversion cycle of Arcosa Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the cash conversion cycle was 65.03 days, indicating that it took the company approximately 65 days to convert its investments in inventory into cash.
By December 31, 2021, the cash conversion cycle had increased to 70.92 days, suggesting a longer period to convert inventory into cash. However, by December 31, 2022, the cycle decreased to 63.33 days, indicating an improvement in the company's efficiency in managing its working capital.
The trend reversed in the following year, with the cash conversion cycle increasing to 78.67 days by December 31, 2023. This rise may signify potential challenges in inventory management or collection of receivables. However, as of December 31, 2024, the cycle decreased again to 63.93 days, showing a positive improvement compared to the previous year.
Overall, the fluctuations in Arcosa Inc's cash conversion cycle over the analyzed period reflect variations in the company's ability to efficiently manage its working capital, with potential impacts on its liquidity and overall financial performance.
Peer comparison
Dec 31, 2024