Allegheny Technologies Incorporated (ATI)
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 | 142.57 | 121.30 | 94.44 | 92.67 | 89.98 | 118.55 | 150.19 | 143.02 | 139.80 | 151.06 | 169.59 | 171.90 | 154.83 | 158.16 | 164.26 | 154.51 | 135.33 | 129.24 | 124.91 | 125.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 142.57 | 121.30 | 94.44 | 92.67 | 89.98 | 118.55 | 150.19 | 143.02 | 139.80 | 151.06 | 169.59 | 171.90 | 154.83 | 158.16 | 164.26 | 154.51 | 135.33 | 129.24 | 124.91 | 125.62 |
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 years, reflecting the company's efficiency in managing its working capital. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a high of 171.90 days in March 31, 2022, to a low of 89.98 days in December 31, 2023. A longer cash conversion cycle indicates that the company is taking more time to convert its resources into cash, which may signify inefficiencies in inventory management, collection of receivables, or delay in payment of payables.
The increase in the cash conversion cycle from 2020 to 2022, followed by a decreasing trend from 2023 to 2024, suggests that Allegheny Technologies Incorporated may have faced challenges in managing working capital initially but then made improvements in its cash conversion efficiency.
Overall, monitoring and managing the cash conversion cycle is crucial for the company to optimize its liquidity position, streamline operations, and enhance profitability by reducing the time it takes to turn investments into cash inflows.