Aecom Technology Corporation (ACM)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 2.67 | 2.25 | — | — | 3.19 | 2.14 | 24.88 | 25.75 | 24.45 | 24.85 | 25.56 | 28.38 | — | 40.75 | 40.32 | 41.33 | 43.95 | 61.67 |
| Days of sales outstanding (DSO) | days | 82.70 | 77.56 | 77.95 | 76.26 | 78.07 | 80.42 | 79.78 | 82.70 | 80.43 | 83.42 | 83.09 | 86.64 | 88.32 | 87.46 | 92.15 | 95.56 | 94.44 | 95.56 | 80.64 | 78.16 |
| Number of days of payables | days | 62.21 | 60.12 | 58.65 | 55.31 | 59.53 | 58.90 | 58.91 | 58.49 | 60.16 | 59.67 | 56.33 | 59.78 | 60.84 | 59.05 | 61.35 | 65.66 | 68.69 | 61.40 | 62.89 | 67.42 |
| Cash conversion cycle | days | 20.49 | 17.45 | 21.98 | 23.20 | 18.54 | 21.52 | 24.06 | 26.34 | 45.15 | 49.51 | 51.21 | 51.70 | 53.05 | 56.79 | 30.80 | 70.65 | 66.07 | 75.48 | 61.69 | 72.42 |
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 fluctuated over the past several quarters, indicating varying efficiency in managing its working capital. A lower cash conversion cycle is generally favorable as it signifies that the company is able to convert its investments in inventory and accounts receivable into cash more quickly.
Looking at the data provided, we can see that the cash conversion cycle decreased from 72.42 days in June 2020 to 17.45 days in June 2024, reaching its lowest point in that timeframe. This significant improvement suggests that Aecom has been managing its inventory and accounts receivable more effectively, resulting in quicker cash generation.
However, the cash conversion cycle saw some volatility, with fluctuations in the following quarters. Notably, there was a slight increase in the cycle in September 2024 compared to June 2024, which can be a cause for monitoring. Overall, the company has shown a positive trend in optimizing its working capital efficiency, but it should continue to focus on maintaining consistency to support its financial health and operations.
Peer comparison
Sep 30, 2024