American Axle & Manufacturing (AXL)
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 | 29.73 | 30.66 | 30.42 | 31.16 | 32.15 | 31.28 | 32.80 | 32.73 | 33.22 | 32.83 | 36.90 | 33.58 | 33.78 | 33.60 | 30.96 | 29.54 | 28.58 | 27.62 | 29.49 | 27.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 29.73 | 30.66 | 30.42 | 31.16 | 32.15 | 31.28 | 32.80 | 32.73 | 33.22 | 32.83 | 36.90 | 33.58 | 33.78 | 33.60 | 30.96 | 29.54 | 28.58 | 27.62 | 29.49 | 27.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.73 + — – —
= 29.73
The cash conversion cycle of American Axle & Manufacturing has shown variability over the past few years. The cash conversion cycle, which represents the length of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has fluctuated between approximately 27 to 37 days.
In the most recent period, the company's cash conversion cycle as of December 31, 2024, stood at 29.73 days. This indicates that it took American Axle & Manufacturing approximately 29.73 days to convert its investments in inventory into cash from sales.
Analyzing the trend, we observe that there was a slight decrease in the cash conversion cycle from June 30, 2022, to December 31, 2024. This may indicate improvements in the company's inventory management and sales processes, leading to a more efficient cash conversion cycle.
Overall, a decreasing trend in the cash conversion cycle suggests that American Axle & Manufacturing has been able to streamline its operations and convert its investments into cash more quickly. However, it's essential to continue monitoring this metric to ensure efficiency in working capital management going forward.
Peer comparison
Dec 31, 2024