Api Group Corp (APG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.78 | 10.98 | 12.28 | 8.39 | 8.25 |
| Days of sales outstanding (DSO) | days | 98.66 | 96.47 | 98.62 | 91.16 | 79.47 |
| Number of days of payables | days | 37.48 | 34.54 | 36.92 | 28.70 | 19.34 |
| Cash conversion cycle | days | 71.97 | 72.90 | 73.98 | 70.85 | 68.38 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.78 + 98.66 – 37.48
= 71.97
The cash conversion cycle (CCC) of Api Group Corp has exhibited a relatively stable trend over the period from December 31, 2020, to December 31, 2024. Specifically, the CCC increased from 68.38 days in 2020 to a peak of 73.98 days in 2022, indicating a lengthening of the period required to convert investments in inventory and receivables into cash flows from sales.
Following this peak, a marginal reduction is observed, with the CCC decreasing to 72.90 days in 2023 and further to 71.97 days in 2024. This slight decline suggests an improvement in the company's operational efficiency in managing inventory, receivables, or payables, thereby reducing the time lag between cash outflows and inflows.
Overall, the CCC has remained within a narrow range of approximately 68 to 74 days across the four-year span. The minor fluctuations reflect a stable operational cycle, with a tendency toward marginally enhanced cash flow management towards the end of the period. Such stability amid small variations implies that Api Group Corp maintains consistent working capital policies, though the slight improvements in 2023 and 2024 could indicate efforts toward optimizing cash conversion efficiency.
Peer comparison
Dec 31, 2024