Autoliv Inc (ALV)
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 | 39.72 | 42.68 | 47.50 | 42.21 | 46.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 39.72 | 42.68 | 47.50 | 42.21 | 46.99 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.72 + — – —
= 39.72
The cash conversion cycle of Autoliv Inc has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 46.99 days, indicating the average time it takes for Autoliv to convert its investments in inventory and receivables into cash.
Over the following years, there were some improvements and setbacks in the efficiency of Autoliv's cash management. By December 31, 2021, the cash conversion cycle decreased to 42.21 days, suggesting a more efficient liquidity management compared to the previous year. However, by December 31, 2022, the cycle increased to 47.50 days, indicating a longer period for the company to convert its resources into cash.
Autoliv managed to enhance its cash conversion cycle by December 31, 2023, bringing it down to 42.68 days, possibly through better inventory and receivables management strategies. The most recent data as of December 31, 2024, shows a further improvement with a cash conversion cycle of 39.72 days, reflecting a more effective cash flow management approach within the company.
Overall, Autoliv Inc has experienced fluctuations in its cash conversion cycle over the analyzed period, with varying levels of efficiency in converting investments into cash. Monitoring and optimizing the cash conversion cycle is essential for Autoliv to enhance its working capital management and overall financial performance.
Peer comparison
Dec 31, 2024