AdvanSix Inc (ASIX)
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 | 56.81 | 56.50 | 48.22 | 38.70 | 64.18 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 56.81 | 56.50 | 48.22 | 38.70 | 64.18 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.81 + — – —
= 56.81
The cash conversion cycle of AdvanSix Inc has fluctuated over the past five years. As of December 31, 2020, the company's cash conversion cycle was 64.18 days, indicating that it took AdvanSix around 64 days to convert resources into cash. By December 31, 2021, this cycle had improved to 38.70 days, suggesting more efficient management of working capital and quicker conversion of inventory, payables, and receivables into cash.
However, the cash conversion cycle increased to 48.22 days by December 31, 2022, and further to 56.50 days by December 31, 2023, indicating a potential slowdown in the company's cash conversion efficiency. The cycle slightly increased to 56.81 days as of December 31, 2024.
Overall, AdvanSix Inc should aim to reduce its cash conversion cycle to improve its liquidity and operational efficiency, ensuring a more effective management of working capital components. Monitoring and managing the cash conversion cycle closely can help the company optimize its cash flow and overall financial performance.
Peer comparison
Dec 31, 2024