Astec Industries Inc (ASTE)
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 | 157.93 | 175.70 | 169.96 | 180.10 | 165.07 | 158.39 | 148.81 | 146.87 | 142.11 | 152.88 | 150.28 | 150.71 | 130.80 | 126.87 | 118.99 | 113.60 | 116.32 | 112.25 | 110.01 | 121.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 157.93 | 175.70 | 169.96 | 180.10 | 165.07 | 158.39 | 148.81 | 146.87 | 142.11 | 152.88 | 150.28 | 150.71 | 130.80 | 126.87 | 118.99 | 113.60 | 116.32 | 112.25 | 110.01 | 121.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 157.93 + — – —
= 157.93
The cash conversion cycle of Astec Industries Inc has shown a fluctuating trend over the past few years. The calculation considers the average time it takes for the company to convert its investments in inventory and other resources into cash received from sales.
From March 31, 2020, when the cash conversion cycle was 121.05 days, the metric improved steadily, reaching its lowest level of 110.01 days by June 30, 2020. However, there was an uptick in the cycle over the following quarters, peaking at 180.10 days as of March 31, 2024.
The increasing trend observed in the latter half of the period could indicate challenges in managing the company's working capital efficiency. Longer cash conversion cycles may suggest inventory management issues, delays in receiving payments from customers, or difficulties in turning sales into cash quickly.
It is important for Astec Industries Inc to closely monitor and effectively manage its cash conversion cycle to ensure optimal liquidity, streamline operations, and enhance overall financial performance. Reducing the cycle time can free up cash flow, improve profitability, and strengthen the company's financial health in the long term.
Peer comparison
Dec 31, 2024