Aecom Technology Corporation (ACM)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 24.88 | 25.56 | 40.32 |
| Days of sales outstanding (DSO) | days | 82.70 | 78.07 | 80.43 | 88.32 | 94.44 |
| Number of days of payables | days | 62.21 | 59.53 | 60.16 | 60.84 | 68.69 |
| Cash conversion cycle | days | 20.49 | 18.54 | 45.15 | 53.05 | 66.07 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 82.70 – 62.21
= 20.49
The cash conversion cycle of Aecom Technology Corporation has shown fluctuations over the past five years. In 2024, the company's cash conversion cycle decreased to 20.49 days from 18.54 days in 2023, indicating an improvement in its efficiency in managing cash flows from operations, inventory, and accounts receivable.
Compared to the previous years, the company has been able to convert its investments in inventory and accounts receivable into cash more quickly in 2024. This could be attributed to effective inventory management and efficient collection of receivables, leading to a shorter cash conversion cycle.
In 2022, Aecom Technology Corporation experienced a significant increase in its cash conversion cycle to 45.15 days, which improved from 53.05 days in 2021 and 66.07 days in 2020. This increase could be a sign of challenges in managing working capital effectively or delays in receiving payments from customers during that period.
Overall, a decreasing trend in the cash conversion cycle over the years indicates that Aecom Technology Corporation has been successful in optimizing its working capital management and improving its cash flow efficiency. This trend suggests that the company has been able to operate more effectively and generate cash from its operations in a timelier manner.
Peer comparison
Sep 30, 2024