Arcosa Inc (ACA)
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 | 63.93 | 66.02 | 75.07 | 77.18 | 78.67 | 73.08 | 71.65 | 65.76 | 63.33 | 65.31 | 59.69 | 71.60 | 70.92 | 77.97 | 80.16 | 69.32 | 65.03 | 68.37 | 75.70 | 75.69 |
Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Cash conversion cycle | days | 63.93 | 66.02 | 75.07 | 77.18 | 78.67 | 73.08 | 71.65 | 65.76 | 63.33 | 65.31 | 59.69 | 71.60 | 70.92 | 77.97 | 80.16 | 69.32 | 65.03 | 68.37 | 75.70 | 75.69 |
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 some fluctuations over the periods analyzed. The company's cash conversion cycle measures the average number of days it takes for Arcosa Inc to convert its investments in inventory and other resources into cash inflows from sales.
From March 31, 2020, to September 30, 2020, the cash conversion cycle decreased from 75.69 days to 68.37 days, indicating an improvement in the efficiency of Arcosa Inc's operations. However, the cycle increased to 80.16 days by June 30, 2021, before gradually declining to 59.69 days by June 30, 2022.
Despite the improvement in mid-2022, the cash conversion cycle started increasing again, reaching 78.67 days by December 31, 2023. This extended cycle suggests potential challenges in managing inventory, accounts receivable, and accounts payable efficiently.
By the end of the analysis period on December 31, 2024, the cash conversion cycle had reduced to 63.93 days. Overall, Arcosa Inc should continue monitoring and managing its cash conversion cycle to optimize its working capital management and enhance overall financial performance.
Peer comparison
Dec 31, 2024