Aecom Technology Corporation (ACM)
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 | 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 | 17.58 | 14.96 | 14.25 |
| Days of sales outstanding (DSO) | days | 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 | 94.10 | 80.78 | 69.64 |
| Number of days of payables | days | 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 | 67.53 | 64.26 | 56.82 |
| Cash conversion cycle | days | 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 | 44.15 | 31.48 | 27.06 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.25 + 76.26 – 55.31
= 23.20
The cash conversion cycle of AECOM has shown fluctuations over the last eight quarters.
In Q1 2024, the company's cash conversion cycle increased to 6.83 days from 5.43 days in Q4 2023, indicating a slight slowdown in the efficiency of its working capital management. This increase could be attributed to factors such as delays in collecting receivables or managing inventory levels.
Comparing Q3 2023 to Q2 2023, there was a significant increase in the cash conversion cycle from 8.47 days to 8.36 days. This suggests that AECOM took longer to convert its investments in raw materials and work in progress into cash during Q3 2023.
In Q1 2023, the cash conversion cycle was at its highest at 10.88 days, implying that AECOM took longer to realize cash from its operations during that period. However, the company managed to improve its cash conversion cycle in the subsequent quarters.
Overall, AECOM's cash conversion cycle has shown some variability, indicating the need for continuous monitoring and management of working capital efficiency to ensure optimal cash flow operations.
Peer comparison
Dec 31, 2023