Api Group Corp (APG)
Cash conversion cycle
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 11.03 | 10.56 | 11.41 | 11.37 | 10.79 | 10.87 | 11.37 | 12.41 | 12.05 | 12.28 | 12.33 | 13.80 | 14.92 | 8.39 | 9.10 | 9.03 | 8.74 | 8.25 | 7.09 | 7.12 |
| Days of sales outstanding (DSO) | days | 94.17 | 98.66 | 100.12 | 96.80 | 90.47 | 96.47 | 96.14 | 97.74 | 93.20 | 98.62 | 107.66 | 118.37 | 129.59 | 91.16 | 93.17 | 85.48 | 77.20 | 79.47 | 89.62 | 84.57 |
| Number of days of payables | days | 33.09 | 36.68 | 33.41 | 31.11 | 27.84 | 34.20 | 31.61 | 34.54 | 32.67 | 36.92 | 38.54 | 41.48 | 41.08 | 28.70 | 26.28 | 23.57 | 22.11 | 19.34 | 17.67 | 18.38 |
| Cash conversion cycle | days | 72.10 | 72.53 | 78.11 | 77.06 | 73.42 | 73.14 | 75.90 | 75.61 | 72.57 | 73.98 | 81.45 | 90.69 | 103.43 | 70.85 | 75.99 | 70.95 | 63.82 | 68.38 | 79.04 | 73.30 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.03 + 94.17 – 33.09
= 72.10
The data on Api Group Corp's cash conversion cycle (CCC) from June 30, 2020, through March 31, 2025, indicate a general pattern of fluctuation within a relatively narrow range, reflecting the company's operational efficiency in managing its working capital.
Initially, the CCC was approximately 73.30 days as of June 30, 2020, with a slight increase to around 79.04 days by September 30, 2020. The cycle then decreased to roughly 68.38 days at the end of 2020, indicating an improvement in operational efficiency during that period. This downward trend continued into March 31, 2021, with the CCC reaching approximately 63.82 days, which represents a notable enhancement in cash flow management and possibly shorter inventory periods or quicker receivables collection cycles.
Throughout 2021, the CCC generally hovered between roughly 70.85 days and 75.99 days, suggesting a period of relative stability in working capital management. Notably, the cycle increased sharply to about 103.43 days by March 31, 2022, signaling a potential slowdown in receivables collections, longer inventory holding periods, or extended payable periods. Following this peak, the CCC decreased substantially to approximately 90.69 days by June 30, 2022, and further declined to around 81.45 days by September 30, 2022, indicating a recovery towards more efficient cash cycle management.
The subsequent months demonstrate some variability, but the CCC generally stabilized within the 70-75 day range, with values such as approximately 73.98 days at the end of 2022, 72.57 days at the end of March 2023, and 75.61 days at the end of June 2023. In the latter part of 2023 and into 2024, the CCC remains relatively steady, fluctuating slightly around 72 to 78 days, suggesting consistent operational practices.
Overall, the company's cash conversion cycle has experienced periods of both efficiency improvement and slowdown, but the cycle has largely remained within a stable range over the analyzed period. The fluctuations may reflect adjustments in inventory management, receivables collection, or payables strategies in response to changing market or internal conditions. Nonetheless, the relative consistency in the CCC signifies a well-managed working capital system, with occasional deviations that warrant monitoring for potential underlying operational or strategic shifts.
Peer comparison
Mar 31, 2025