Advanced Energy Industries Inc (AEIS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.61 | 96.56 | 108.12 | 73.73 | 132.63 |
| Days of sales outstanding (DSO) | days | 62.90 | 59.56 | 2.71 | 1.24 | — |
| Number of days of payables | days | 38.66 | 43.78 | 61.89 | 41.71 | 98.41 |
| Cash conversion cycle | days | 115.85 | 112.34 | 48.94 | 33.26 | 34.22 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.61 + 62.90 – 38.66
= 115.85
The cash conversion cycle of Advanced Energy Industries Inc. has shown a fluctuating trend over the past five years.
In 2019, the company had a relatively long cash conversion cycle of 161.80 days, indicating that it took a significant amount of time to convert its investments in raw materials and other resources into cash from sales.
However, in the subsequent years, the company managed to improve its cash conversion cycle, with the cycle decreasing to 102.01 days in 2020, 119.35 days in 2021, and further to 123.60 days in 2022.
The cash conversion cycle increased slightly to 128.94 days in 2023, suggesting that the company may have faced challenges in managing its working capital efficiency during that period.
Overall, Advanced Energy Industries Inc. should continue monitoring and managing its cash conversion cycle effectively to optimize its working capital management and ensure efficient operations in the future.
Peer comparison
Dec 31, 2023