Avient Corp (AVNT)
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 | 57.97 | 62.99 | 60.88 | 59.12 | 56.73 | 54.10 | 53.97 | 47.75 | 41.92 | 45.08 | 46.10 | 44.96 | 45.25 | 49.55 | 46.12 | 46.91 | 48.64 | 51.22 | 43.01 | 43.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 57.97 | 62.99 | 60.88 | 59.12 | 56.73 | 54.10 | 53.97 | 47.75 | 41.92 | 45.08 | 46.10 | 44.96 | 45.25 | 49.55 | 46.12 | 46.91 | 48.64 | 51.22 | 43.01 | 43.24 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.97 + — – —
= 57.97
The cash conversion cycle of Avient Corp has shown some fluctuations over the periods under review. The average cash conversion cycle over the period is approximately 48.61 days.
The trend indicates that the cash conversion cycle increased from September 2020 to June 2021 and then decreased until September 2021 before increasing again until December 2023. From there, the cycle decreased until September 2024 before increasing slightly by December 2024.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle may indicate inefficiencies in the company's operations, such as slow inventory turnover or lengthy collection periods for accounts receivable.
Avient Corp should focus on optimizing its cash conversion cycle by managing its inventory more efficiently, improving its accounts receivable collection process, and negotiating better payment terms with suppliers to enhance its liquidity position and overall financial performance.
Peer comparison
Dec 31, 2024