Align Technology Inc (ALGN)
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 | 77.36 | 93.79 | 112.32 | 82.61 | 71.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 77.36 | 93.79 | 112.32 | 82.61 | 71.71 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.36 + — – —
= 77.36
The cash conversion cycle for Align Technology Inc has shown some fluctuation over the years. In 2020, the company had a cash conversion cycle of 71.71 days, indicating that it takes approximately 71.71 days for the company to convert its investments in raw materials into cash from sales.
In 2021, there was a slight increase in the cash conversion cycle to 82.61 days, which means it took longer for the company to convert its resources into cash. Subsequently, in 2022, the cycle extended further to 112.32 days, signifying an even longer period for Align Technology Inc to complete the cash conversion process.
By 2023, the cash conversion cycle decreased to 93.79 days, suggesting some improvement in efficiency compared to the previous year. In 2024, the cycle further decreased to 77.36 days, indicating a more efficient conversion of resources into cash over the year.
Overall, while there have been fluctuations in the cash conversion cycle for Align Technology Inc, the company managed to shorten the cycle in recent years, potentially improving its cash flow efficiency and operational effectiveness.
Peer comparison
Dec 31, 2024