Alamo Group Inc (ALG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 103.06 | 111.47 | 113.17 | 117.17 | 96.33 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 103.06 | 111.47 | 113.17 | 117.17 | 96.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 103.06 + — – —
= 103.06
The cash conversion cycle of Alamo Group Inc has shown variations over the period from December 31, 2020, to December 31, 2024.
In December 2020, the cash conversion cycle was 96.33 days, indicating that the company took around 96.33 days on average to convert its investments in inventory and accounts receivable into cash.
By the end of 2021, there was a slight increase in the cash conversion cycle to 117.17 days, signifying that Alamo Group Inc took longer to convert its working capital into cash compared to the previous year.
In the following years, the cash conversion cycle continued to fluctuate. By the end of 2022, it decreased to 113.17 days, increased slightly to 111.47 days in 2023, and then declined to 103.06 days by the end of 2024.
A decreasing trend in the cash conversion cycle indicates an improvement in the efficiency of Alamo Group Inc's working capital management, as the company was able to reduce the time taken to convert its investments into cash.
Overall, tracking the cash conversion cycle helps assess the efficiency of Alamo Group Inc in managing its operating cycle and liquidity position over the years.
Peer comparison
Dec 31, 2024