Advanced Energy Industries Inc (AEIS)
Cash conversion cycle
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 136.32 | 140.36 | 139.18 | 128.13 | 113.71 | 119.27 | 121.74 | 123.50 | 117.31 | 134.13 | 142.33 | 136.80 | 133.73 | 139.76 | 120.14 | 102.12 | 92.44 | 107.42 | 128.20 | 142.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 136.32 | 140.36 | 139.18 | 128.13 | 113.71 | 119.27 | 121.74 | 123.50 | 117.31 | 134.13 | 142.33 | 136.80 | 133.73 | 139.76 | 120.14 | 102.12 | 92.44 | 107.42 | 128.20 | 142.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 136.32 + — – —
= 136.32
The cash conversion cycle of Advanced Energy Industries Inc has shown fluctuations over the years based on the provided data. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2024, the cash conversion cycle of Advanced Energy Industries Inc has varied between 92.44 days to 142.78 days. The trend in the cash conversion cycle seems to have peak points followed by decreases and vice versa, indicating fluctuations in the efficiency of the company's cash management and working capital requirements.
A decreasing cash conversion cycle suggests that the company is managing its cash flow more effectively, possibly by reducing the amount of time it takes to sell inventory and collect cash from customers. Conversely, an increasing cash conversion cycle could indicate inefficiencies in inventory management or accounts receivable collection.
Overall, a detailed analysis of the cash conversion cycle trends would provide insights into the company's working capital management efficiency, liquidity, and operational performance. Further investigation into the underlying factors influencing these fluctuations would be necessary to understand the implications for Advanced Energy Industries Inc.
Peer comparison
Dec 31, 2024