Allegheny Technologies Incorporated (ATI)
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 | 121.12 | 134.47 | 136.41 | 130.32 | 126.98 | 137.17 | 157.23 | 159.40 | 144.41 | 196.09 | 199.04 | 162.18 | 140.81 | 108.98 | 106.37 | 116.08 | 111.90 | 111.91 | 116.59 | 122.44 |
| Days of sales outstanding (DSO) | days | 54.65 | 62.03 | 64.39 | 67.24 | 56.98 | 72.86 | 73.73 | 73.76 | 64.86 | 67.67 | 51.52 | 57.33 | 42.60 | 42.89 | 46.57 | 52.27 | 48.26 | 51.47 | 50.95 | 50.65 |
| Number of days of payables | days | 50.95 | 43.20 | 46.22 | 45.07 | 58.76 | 46.24 | 52.20 | 53.10 | 51.83 | 53.99 | 49.96 | 50.27 | 41.04 | 25.32 | 26.58 | 41.73 | 50.48 | 39.82 | 40.28 | 44.44 |
| Cash conversion cycle | days | 124.82 | 153.29 | 154.58 | 152.48 | 125.20 | 163.79 | 178.77 | 180.06 | 157.44 | 209.77 | 200.60 | 169.24 | 142.37 | 126.55 | 126.35 | 126.62 | 109.68 | 123.56 | 127.26 | 128.65 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.12 + 54.65 – 50.95
= 124.82
The cash conversion cycle for ATI Inc has shown some fluctuation over the past eight quarters. In Q4 2023, the cash conversion cycle was 132.91 days, which decreased compared to the previous quarter. This suggests that ATI Inc improved its efficiency in managing its working capital and converting its resources into cash.
Overall, the cash conversion cycle has been on a declining trend since Q2 2022, where it peaked at 183.88 days. This indicates that ATI Inc has been able to streamline its operations and reduce the time it takes to convert its investments in inventory and accounts receivable into cash.
It is important to monitor the cash conversion cycle over time to ensure that ATI Inc continues to effectively manage its working capital and maintain a healthy cash flow position.