AdvanSix Inc (ASIX)
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 | 56.81 | 55.23 | 46.36 | 50.78 | 56.50 | 62.44 | 56.16 | 51.71 | 48.22 | 34.72 | 35.72 | 40.62 | 38.70 | 39.26 | 41.64 | 48.37 | 64.18 | 60.54 | 63.11 | 49.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 56.81 | 55.23 | 46.36 | 50.78 | 56.50 | 62.44 | 56.16 | 51.71 | 48.22 | 34.72 | 35.72 | 40.62 | 38.70 | 39.26 | 41.64 | 48.37 | 64.18 | 60.54 | 63.11 | 49.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.81 + — – —
= 56.81
The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For AdvanSix Inc, the cash conversion cycle has shown fluctuations over the years based on the provided data.
From March 31, 2020, to June 30, 2020, there was an increase in the cash conversion cycle from 49.44 days to 63.11 days, indicating a longer time to convert investments into cash. However, this trend reversed in the following quarters, with the cycle decreasing to 41.64 days by June 30, 2021. This suggests an improvement in the efficiency of AdvanSix Inc's operations in terms of inventory management and receivables collection.
Over the subsequent periods, the cash conversion cycle continued to decrease, reaching a low of 34.72 days by September 30, 2022. This indicates that the company was able to manage its working capital more effectively and convert its assets into cash more swiftly during this time frame.
However, there was an uptick in the cash conversion cycle by December 31, 2022, which increased to 48.22 days. This increase may suggest possible challenges in managing working capital efficiently, leading to a longer cycle.
By March 31, 2024, the cash conversion cycle had decreased to 50.78 days, indicating some improvement from the previous period. However, it is still higher compared to the lows seen in 2022 and 2023, suggesting that AdvanSix Inc may be facing challenges in optimizing its working capital management.
Overall, analyzing the cash conversion cycle provides insights into how efficiently AdvanSix Inc is managing its working capital and converting its investments into cash. Fluctuations in the cycle can indicate changes in operational efficiency and liquidity management within the company.
Peer comparison
Dec 31, 2024