Alamo Group Inc (ALG)
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 | 92.09 | 92.49 | 94.26 | 94.60 | 94.00 | 99.22 | 98.36 | 102.27 | 95.89 | 90.61 | 84.85 | 85.37 | 82.33 | 82.20 | 84.92 | 92.48 | 94.93 | 76.77 | 78.00 | 82.26 |
| Days of sales outstanding (DSO) | days | 78.24 | 83.79 | 86.46 | 85.04 | 76.81 | 76.36 | 78.76 | 78.52 | 65.73 | 69.48 | 77.30 | 77.55 | 67.61 | 69.74 | 74.26 | 79.92 | 81.82 | 84.94 | 94.80 | 97.12 |
| Number of days of payables | days | 24.32 | 27.60 | 29.68 | 26.49 | 26.01 | 27.60 | 29.82 | 32.90 | 30.30 | 32.96 | 33.59 | 32.03 | 25.57 | 27.70 | 21.65 | 30.04 | 29.08 | 25.65 | 25.53 | 27.34 |
| Cash conversion cycle | days | 146.01 | 148.68 | 151.05 | 153.14 | 144.80 | 147.98 | 147.30 | 147.90 | 131.32 | 127.13 | 128.56 | 130.88 | 124.37 | 124.24 | 137.53 | 142.36 | 147.68 | 136.06 | 147.26 | 152.03 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 92.09 + 78.24 – 24.32
= 146.01
The cash conversion cycle of Alamo Group Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 160.25 days, which was slightly lower compared to the previous quarter. Despite this decrease, the cycle remained relatively stable over the past year, with a range between 158.66 and 167.01 days.
A lower cash conversion cycle indicates that the company is able to convert its inventory into cash more quickly, which can be a positive sign of efficient operations. Conversely, a longer cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying payables.
Overall, the trend in Alamo Group Inc.'s cash conversion cycle over the past eight quarters suggests that the company has been able to maintain a relatively stable performance in managing its cash flow, with minor fluctuations between quarters.
Peer comparison
Dec 31, 2023