Aptiv PLC (APTV)

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	47.09	51.61	47.19	46.86	46.82	48.59	48.97	53.68	52.26	52.42	56.18	56.58	50.42	53.45	47.33	45.83	42.55	42.31	42.28	43.36
Days of sales outstanding (DSO)	days	65.86	72.83	70.92	71.06	69.45	71.33	75.36	76.37	76.13	77.50	75.26	76.67	70.86	68.69	68.03	80.25	84.25	85.61	61.84	66.89
Number of days of payables	days	58.25	60.49	58.05	57.18	62.38	61.06	62.31	64.72	70.36	63.08	65.38	71.22	73.93	64.18	67.64	78.85	84.34	75.26	49.96	71.35
Cash conversion cycle	days	54.70	63.95	60.07	60.75	53.89	58.86	62.03	65.33	58.04	66.84	66.06	62.03	47.35	57.97	47.72	47.22	42.46	52.66	54.17	38.89

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.09 + 65.86 – 58.25
= 54.70

The cash conversion cycle of Aptiv PLC has shown fluctuations over the periods analyzed. The cycle represents the time it takes for the company to convert its investments in inventory into cash flow from sales.

In March 2020, the cash conversion cycle was 38.89 days, indicating a relatively efficient process. However, by June 2020, the cycle increased to 54.17 days, suggesting a longer time to convert inventory into cash. The cycle decreased to 42.46 days by December 2020 before fluctuating in the following periods.

The cycle peaked at 66.84 days in September 2022, reflecting a longer period to convert investments into cash. From there, the cycle fluctuated but generally stayed above 50 days until December 2024, when it decreased to 54.70 days.

Overall, the trend in the cash conversion cycle of Aptiv PLC shows fluctuations, with periods of increased and decreased efficiency in converting inventory into cash. Monitoring and managing this cycle effectively is crucial for the company's liquidity and operational efficiency.