Autoliv Inc (ALV)

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	40.35	40.49	40.07	44.02	44.87	43.75	44.94	46.16	39.60	44.70	43.21	44.68	43.42	40.71	43.10	39.36	36.34	36.12	36.38	36.61
Days of sales outstanding (DSO)	days	79.49	—	—	—	81.03	—	—	0.04	77.66	0.04	0.04	0.05	89.82	0.06	0.05	0.07	69.77	71.02	72.27	74.47
Number of days of payables	days	78.87	76.60	78.03	75.13	78.39	71.17	64.85	70.03	57.54	52.17	53.96	63.42	66.76	52.04	35.02	44.00	46.14	43.95	46.80	46.79
Cash conversion cycle	days	40.97	-36.12	-37.96	-31.12	47.51	-27.42	-19.91	-23.82	59.73	-7.42	-10.70	-18.69	66.48	-11.27	8.13	-4.57	59.96	63.19	61.86	64.29

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.35 + 79.49 – 78.87
= 40.97

The cash conversion cycle of Autoliv Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 37.94 days, which improved from the previous quarter where it was 40.86 days. This indicates that Autoliv Inc. was able to more efficiently convert its investments in inventory and accounts receivable into cash during the most recent quarter.

However, comparing the Q4 2023 data to the same period in the previous year (Q4 2022 - 45.50 days), Autoliv Inc. has been able to significantly reduce its cash conversion cycle. This implies that the company has been managing its working capital more effectively, potentially through better inventory management or speeding up collection of receivables.

Overall, the trend in Autoliv Inc.'s cash conversion cycle over the past year has shown some improvement, indicating a more efficient utilization of the company's resources to generate cash flow.