Advanced Energy Industries Inc (AEIS)
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 | 91.61 | 96.26 | 99.48 | 101.39 | 96.56 | 110.53 | 116.11 | 111.19 | 108.12 | 112.56 | 96.72 | 81.54 | 73.73 | 114.76 | 142.51 | 171.96 | 238.35 | 247.72 | 103.13 | 104.18 |
| Days of sales outstanding (DSO) | days | 62.89 | — | — | — | 59.70 | — | — | — | 2.71 | 4.87 | 3.75 | 1.34 | 1.24 | 3.45 | — | — | — | — | 1.55 | — |
| Number of days of payables | days | 38.66 | 37.11 | 37.84 | 46.92 | 43.78 | 59.33 | 58.04 | 56.42 | 61.89 | 62.70 | 67.38 | 53.56 | 41.71 | 71.04 | 98.87 | 122.37 | 176.86 | 216.79 | 41.46 | 46.30 |
| Cash conversion cycle | days | 115.84 | 59.15 | 61.63 | 54.46 | 112.48 | 51.20 | 58.07 | 54.77 | 48.94 | 54.73 | 33.09 | 29.32 | 33.26 | 47.17 | 43.64 | 49.59 | 61.50 | 30.93 | 63.22 | 57.88 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.61 + 62.89 – 38.66
= 115.84
The cash conversion cycle of Advanced Energy Industries Inc. has shown slight fluctuations over the past eight quarters. The company's cash conversion cycle ranged from a low of 123.17 days in Q1 2023 to a high of 133.70 days in Q2 2022, with most quarters falling within the range of 123 to 133 days.
Overall, the company's cash conversion cycle has been relatively stable, indicating that Advanced Energy Industries Inc. is efficient in managing its cash flow. A lower cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, which is generally favorable.
It is important for the company to monitor its cash conversion cycle regularly to ensure optimal working capital management. By analyzing trends in the cash conversion cycle, Advanced Energy Industries Inc. can identify areas for improvement and make strategic decisions to enhance its cash flow efficiency.
Peer comparison
Dec 31, 2023