Axcelis Technologies Inc (ACLS)
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 | 182.90 | 177.17 | 167.89 | 182.13 | 174.98 | 182.79 | 186.55 | 172.53 | 170.74 | 173.00 | 171.97 | 179.94 | 189.29 | 218.34 | 241.17 | 228.24 | 213.04 | 215.71 | 220.64 | 227.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 182.90 | 177.17 | 167.89 | 182.13 | 174.98 | 182.79 | 186.55 | 172.53 | 170.74 | 173.00 | 171.97 | 179.94 | 189.29 | 218.34 | 241.17 | 228.24 | 213.04 | 215.71 | 220.64 | 227.53 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 182.90 + — – —
= 182.90
The cash conversion cycle of Axcelis Technologies Inc has shown fluctuations over the provided periods. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle generally indicates that a company is efficiently managing its working capital.
Looking at the data, we can see that the cash conversion cycle decreased from 227.53 days as of March 31, 2020, to 167.89 days as of June 30, 2024, before increasing slightly to 182.90 days by December 31, 2024. This downward trend in the cash conversion cycle generally indicates that Axcelis Technologies Inc has improved its efficiency in managing its working capital and converting its resources into cash.
However, it is important to note that a very low cash conversion cycle may also suggest aggressive sales tactics or inadequate inventory levels, which could pose risks in terms of operational efficiency and liquidity. Therefore, while a lower cash conversion cycle is generally favorable, it is essential for Axcelis Technologies Inc to strike a balance to ensure sustainable operations and financial stability.
Peer comparison
Dec 31, 2024