Astec Industries Inc (ASTE)
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 | 128.40 | 124.75 | 119.35 | 118.36 | 115.43 | 121.03 | 118.38 | 118.25 | 101.06 | 102.45 | 95.31 | 90.88 | 92.42 | 89.24 | 88.14 | 101.85 | 103.86 | 118.78 | 126.34 | 122.54 |
| Days of sales outstanding (DSO) | days | 41.83 | 47.37 | 42.27 | 47.25 | 49.82 | 49.28 | 51.19 | 45.68 | 47.22 | 49.82 | 52.43 | 50.54 | 41.28 | 43.41 | 38.36 | 44.05 | 37.59 | 33.59 | 41.27 | 41.61 |
| Number of days of payables | days | 32.95 | 31.68 | 30.34 | 31.56 | 31.45 | 32.15 | 33.27 | 33.41 | 27.81 | 28.22 | 29.05 | 25.34 | 19.50 | 18.14 | 16.16 | 22.15 | 20.17 | 19.93 | 24.62 | 25.54 |
| Cash conversion cycle | days | 137.29 | 140.44 | 131.28 | 134.05 | 133.80 | 138.16 | 136.30 | 130.52 | 120.47 | 124.05 | 118.68 | 116.08 | 114.19 | 114.51 | 110.34 | 123.75 | 121.28 | 132.43 | 142.99 | 138.61 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 128.40 + 41.83 – 32.95
= 137.29
The cash conversion cycle of Astec Industries Inc. has shown some fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 164.37 days, a slight improvement compared to the 166.29 days in Q3 2023. This indicates that the company took slightly less time to convert its investments in inventory back into cash in the most recent quarter.
Looking at the trend over the four quarters of 2023, there was a gradual decrease from Q3 to Q2, but a small increase in Q4. This suggests some variability in the company's efficiency in managing its working capital during the year.
Comparing the Q4 2023 figure to the same quarter in the prior year, there has been a slight increase in the cash conversion cycle, from 153.10 days in Q4 2022 to 164.37 days in Q4 2023. This may indicate a potential slowdown in the company's ability to convert its assets into cash in the most recent quarter.
Overall, the company's cash conversion cycle has been somewhat volatile, showing both improvements and declines over the past eight quarters. Astec Industries Inc. may need to focus on streamlining its operations and optimizing its working capital management to ensure a more consistent and efficient cash conversion cycle in the future.
Peer comparison
Dec 31, 2023