Astec Industries Inc (ASTE)
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 | 157.89 | 165.07 | 142.11 | 130.80 | 116.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 157.89 | 165.07 | 142.11 | 130.80 | 116.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 157.89 + — – —
= 157.89
The cash conversion cycle of Astec Industries Inc has exhibited a trend of increasing days over the past five years. Starting at 116.21 days as of December 31, 2020, the cycle has steadily risen to 157.89 days by December 31, 2024. This indicates that the company is taking longer to convert its investments in inventory and accounts receivable into cash.
The rising trend suggests potential inefficiencies in managing working capital, as a longer cash conversion cycle may tie up cash resources for extended periods, impacting the company's liquidity and cash flow. Astec Industries Inc should focus on optimizing inventory levels, improving collection of accounts receivable, and streamlining its operational processes to shorten the cash conversion cycle and enhance the company's overall financial performance.
Peer comparison
Dec 31, 2024