Autoliv Inc (ALV)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 39.73 | 42.22 | 39.47 | 41.77 | 42.68 | 42.83 | 42.38 | 46.60 | 47.50 | 46.45 | 47.85 | 49.22 | 42.21 | 48.19 | 46.49 | 48.29 | 46.99 | 43.79 | 46.40 | 42.14 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 39.73 | 42.22 | 39.47 | 41.77 | 42.68 | 42.83 | 42.38 | 46.60 | 47.50 | 46.45 | 47.85 | 49.22 | 42.21 | 48.19 | 46.49 | 48.29 | 46.99 | 43.79 | 46.40 | 42.14 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.73 + — – —
= 39.73
Autoliv Inc's cash conversion cycle has shown fluctuations over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, Autoliv Inc's cash conversion cycle fluctuated between a low of 39.47 days on June 30, 2024, to a high of 49.22 days on March 31, 2022. The trend indicates some volatility in the company's operating efficiency and effectiveness in managing its working capital.
A lower cash conversion cycle suggests that the company is efficiently managing its inventory, accounts receivable, and accounts payable, resulting in quicker cash flows. Conversely, a higher cash conversion cycle may signal inefficiencies in managing working capital, leading to a longer period to realize cash from its operations.
Overall, the trend in Autoliv Inc's cash conversion cycle warrants further investigation into the company's working capital management practices to ensure optimal operational efficiency and financial performance.
Peer comparison
Dec 31, 2024