Adient PLC (ADNT)
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 | 20.11 | 21.37 | 26.13 | 27.71 | 20.70 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 67.69 | 64.20 | 67.93 | 60.48 | 65.85 |
| Cash conversion cycle | days | -47.59 | -42.82 | -41.81 | -32.77 | -45.15 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.11 + — – 67.69
= -47.59
The cash conversion cycle of Adient PLC has shown fluctuating trends over the past five years. In 2024, the company's cash conversion cycle improved significantly to -47.59 days compared to the previous year, indicating that Adient is effectively managing its cash flow from operations, inventory, and accounts receivable. This improvement suggests a more efficient conversion of resources into cash.
In 2023, the cash conversion cycle was also favorable at -42.82 days, showing a slight increase compared to 2022. This indicates that Adient was able to convert its resources into cash at a faster rate than the previous year. However, the company's performance in 2023 was not as strong as in 2024.
In 2022 and 2021, Adient's cash conversion cycles were relatively similar, with values of -41.81 days and -32.77 days, respectively. These numbers suggest that the company was able to efficiently manage its working capital, although there was a slight deterioration in 2021 compared to 2022.
In 2020, Adient experienced a less favorable cash conversion cycle of -45.15 days, indicating a longer period to convert resources into cash compared to the subsequent years. This may imply inefficiencies in managing working capital or collecting receivables during that particular year.
Overall, Adient PLC has shown varying levels of efficiency in managing its cash conversion cycle over the past five years, with notable improvements in 2024 and 2023. Analyzing trends in the cash conversion cycle can help assess the company's operational efficiency, liquidity position, and working capital management strategies.
Peer comparison
Sep 30, 2024