Amentum Holdings Inc. (AMTM)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 0.01 | — | — |
| Days of sales outstanding (DSO) | days | — | 105.04 | — | — | — |
| Number of days of payables | days | — | 34.13 | — | — | — |
| Cash conversion cycle | days | 0.00 | 70.91 | 0.01 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Amentum Holdings Inc. has remained stable and efficient over the years, reaching as low as 0.00 days on multiple occasions. This indicates that the company is able to quickly convert its investments in inventory and accounts receivable into cash, demonstrating strong management of working capital. However, a significant increase to 70.91 days as of September 30, 2024, suggests a potential delay in the company's cash conversion process. It is important for Amentum Holdings Inc. to investigate the reasons behind this sudden change to maintain its efficient cash conversion cycle and overall financial health.
Peer comparison
Dec 31, 2024