Advanced Energy Industries Inc (AEIS)

Advanced Energy Industries Inc's cash conversion cycle has witnessed fluctuations over the past five years.

In 2020, the company had a cash conversion cycle of 92.44 days, indicating that it took approximately 92 days to convert its investments in raw materials into cash from sales. This suggests a relatively efficient conversion of inventory to sales and collection of receivables.

However, by the end of 2021, the cash conversion cycle increased significantly to 133.73 days, signifying a delay in the conversion of resources into cash. This could indicate issues such as slower inventory turnover or challenges in collecting receivables promptly.

The trend continued in 2022 with a slight improvement to 117.31 days, but the cycle still remained elevated compared to the base year. This suggests that the company was able to address some inefficiencies but had not fully optimized its working capital management.

By the end of 2023, the cash conversion cycle decreased to 115.37 days, indicating a better performance in converting resources into cash compared to the prior year. This improvement may have been driven by enhanced inventory management or more effective receivables collections.

However, in 2024, the cycle increased to 138.08 days, reaching a new high over the period under review. This could signal potential challenges in managing working capital efficiently, possibly due to factors such as increased inventory levels or delayed collections.

Overall, the fluctuations in Advanced Energy Industries Inc's cash conversion cycle suggest varying effectiveness in managing working capital and converting investments into cash. Further analysis of the underlying factors impacting inventory turnover, accounts receivable collection, and accounts payable management would provide insights into the company's working capital efficiency.

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Dec 31, 2024