Axcelis Technologies Inc (ACLS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 174.98 | 170.74 | 189.29 | 213.04 | 257.70 |
| Days of sales outstanding (DSO) | days | 70.37 | 67.36 | 57.53 | 66.81 | 89.14 |
| Number of days of payables | days | 31.06 | 43.91 | 36.91 | 31.76 | 46.53 |
| Cash conversion cycle | days | 214.29 | 194.18 | 209.90 | 248.09 | 300.31 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 174.98 + 70.37 – 31.06
= 214.29
The cash conversion cycle of Axcelis Technologies Inc has shown fluctuations over the past five years. At the end of December 2023, the company's cash conversion cycle was 214.29 days, an increase from the previous year. This indicates that it took Axcelis Technologies Inc 214.29 days to convert its investments in inventory and receivables into cash during the most recent fiscal year.
Compared to the end of December 2020 when the cash conversion cycle was 248.09 days, the company managed to reduce the cycle in 2021 but then saw an increase in 2023. It is worth noting that a lower cash conversion cycle is generally preferred as it signifies that the company is managing its operating cycle efficiently.
Overall, Axcelis Technologies Inc should continue monitoring and managing its cash conversion cycle effectively to ensure optimized working capital management and operational efficiency in the future.
Peer comparison
Dec 31, 2023