Amentum Holdings Inc. (AMTM)
Cash conversion cycle
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | 105.04 | — | — |
| Number of days of payables | days | 34.13 | — | — |
| Cash conversion cycle | days | 70.91 | 0.00 | 0.00 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 105.04 – 34.13
= 70.91
The cash conversion cycle of Amentum Holdings Inc. has shown consistency in efficiencies during December 31, 2022, and December 31, 2023, with both periods registering a cash conversion cycle of 0.00 days. This indicates that the company is able to swiftly convert its investments in inventory into cash.
However, there was a noticeable increase in the cash conversion cycle to 70.91 days as of September 30, 2024. This longer cash conversion cycle may suggest potential challenges in efficiently managing working capital and converting sales into cash during this period.
It is important for Amentum Holdings Inc. to analyze the reasons behind the increase in the cash conversion cycle in 2024 and implement strategies to optimize working capital management to improve cash flow and overall financial performance. Further monitoring and adjustments may be necessary to ensure robust financial health and operational effectiveness in the future.
Peer comparison
Sep 30, 2024