The Andersons Inc (ANDE)
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 | 44.46 | 30.31 | 21.45 | 28.22 | 30.41 | 23.18 | 22.47 | 34.28 | 37.98 | 36.13 | 40.61 | 53.14 | 55.10 | 34.35 | 33.95 | 55.91 | 61.47 | 38.75 | 31.59 | 49.78 |
| Days of sales outstanding (DSO) | days | 24.79 | 24.34 | 21.95 | 18.85 | 18.87 | 18.38 | 22.39 | 24.05 | 26.57 | 22.27 | 27.81 | 27.87 | 24.46 | 24.11 | 26.18 | 29.37 | 30.12 | 26.33 | 26.35 | 24.89 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 69.25 | 54.65 | 43.40 | 47.08 | 49.28 | 41.56 | 44.86 | 58.33 | 64.55 | 58.40 | 68.42 | 81.01 | 79.56 | 58.46 | 60.13 | 85.28 | 91.59 | 65.08 | 57.94 | 74.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.46 + 24.79 – —
= 69.25
The cash conversion cycle of The Andersons Inc has shown fluctuations over the past few years. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from a high of 91.59 days on December 31, 2020, to a low of 41.56 days on September 30, 2023.
The trend in the cash conversion cycle indicates that the company has been managing its working capital and operating efficiency effectively during the analyzed period. A decreasing trend in the cash conversion cycle is generally positive, as it suggests that the company is improving its ability to convert its investments into cash more efficiently.
A shorter cash conversion cycle indicates that the company is able to sell its inventory more quickly and collect cash from customers faster, which can lead to improved liquidity and profitability. Conversely, a longer cash conversion cycle may indicate inefficiencies in inventory management, collection of receivables, or payment to suppliers.
Overall, The Andersons Inc's cash conversion cycle data suggests that the company has been effective in managing its working capital and improving its operational efficiency over the analyzed period. Investors and stakeholders may view this trend positively as it reflects prudent financial management practices.
Peer comparison
Dec 31, 2024