Allegheny Technologies Incorporated (ATI)
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 | 142.57 | 67.54 | 139.80 | 154.83 | 135.33 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 142.57 | 67.54 | 139.80 | 154.83 | 135.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 142.57 + — – —
= 142.57
The cash conversion cycle for Allegheny Technologies Incorporated has fluctuated over the past five years. In 2020, the company had a cash conversion cycle of 135.33 days, which increased to 154.83 days by the end of 2021. However, in 2022, the cycle decreased to 139.80 days before experiencing a significant drop to 67.54 days by the end of 2023. Subsequently, in 2024, the cycle increased to 142.57 days.
A lower cash conversion cycle indicates that the company is able to efficiently convert its resources into cash, potentially signaling effective management of accounts receivable, inventory, and accounts payable. On the other hand, a higher cash conversion cycle could suggest issues with liquidity management or inefficient working capital practices.
Overall, the trend in the cash conversion cycle of Allegheny Technologies Incorporated demonstrates some variability, which warrants further investigation into the company's operational efficiency and cash management strategies to sustainably optimize working capital performance.