Axcelis Technologies Inc (ACLS)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 257.70 | 255.67 | 230.39 | 202.28 |
| Days of sales outstanding (DSO) | days | 70.37 | 64.62 | 56.79 | 71.31 | 67.36 | 73.84 | 66.08 | 59.23 | 57.53 | 49.34 | 56.63 | 56.75 | 66.81 | 35.83 | 56.53 | 63.29 | 89.14 | 52.51 | 61.97 | 62.87 |
| Number of days of payables | days | 31.06 | 35.16 | 37.64 | 39.81 | 43.91 | 41.26 | 39.88 | 44.81 | 36.91 | 39.38 | 51.03 | 52.98 | 31.76 | 32.78 | 44.77 | 43.63 | 46.53 | 39.40 | 37.11 | 44.73 |
| Cash conversion cycle | days | 214.29 | 212.25 | 205.70 | 204.03 | 194.18 | 205.58 | 198.17 | 194.36 | 209.90 | 228.30 | 246.77 | 232.01 | 248.09 | 218.76 | 232.39 | 247.19 | 300.31 | 268.78 | 255.24 | 220.43 |
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 been relatively stable over the past eight quarters, ranging from 194.18 days in Q4 2022 to 214.29 days in Q4 2023. This metric measures the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales to customers, and then back into cash through collection.
The trend indicates that the company has been able to efficiently manage its working capital over the periods analyzed, with a slight uptick in the most recent quarter. A longer cash conversion cycle could suggest that the company is taking longer to sell its inventory or collect receivables, impacting its liquidity and potentially signaling inefficiencies in its operations or financial management.
Overall, a stable or decreasing trend in the cash conversion cycle is typically viewed favorably, as it implies that the company is effectively managing its working capital and generating cash flows more efficiently. However, a sustained increase in this metric would warrant closer scrutiny to identify any underlying issues that may be affecting the company's cash flow and operational performance.
Peer comparison
Dec 31, 2023