Aptiv PLC (APTV)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	40.08	41.71	40.61	41.29
Days of sales outstanding (DSO)	days	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	71.92	74.41	75.99	76.35
Number of days of payables	days	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	76.77	69.22	71.13	72.87
Cash conversion cycle	days	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	35.24	46.90	45.47	44.77

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.82 + 69.45 – 62.38
= 53.89

The cash conversion cycle of Aptiv PLC has shown fluctuations over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q1 2022, the cash conversion cycle was 60.47 days, slightly decreasing to 56.23 days by Q4 2022. However, there was a slight increase in Q1 2023 to 64.19 days before improving to 60.62 days in Q2 2023. The cycle then decreased further to 57.48 days in Q3 2023 and 52.18 days in Q4 2023, reflecting efficiency in managing its working capital.

Overall, Aptiv PLC has shown a trend of effectively managing its cash conversion cycle, with a general improvement over the quarters analyzed. The company has been successful in optimizing its operations to reduce the time it takes to generate cash from its operating activities, indicating effective inventory management and collection of receivables.