American Axle & Manufacturing (AXL)

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	29.70	28.79	30.14	30.05	30.50	29.92	33.40	30.28	30.34	130.31	114.11	159.81	95.67	20.65	21.45	21.03	20.80	23.76	28.11	27.14
Days of sales outstanding (DSO)	days	49.11	53.91	56.20	55.59	51.59	62.42	63.51	65.43	53.97	50.40	52.21	64.74	61.31	69.91	40.44	46.71	44.79	52.94	59.90	61.53
Number of days of payables	days	47.59	50.76	52.34	49.89	48.26	52.20	57.00	55.37	45.31	188.66	187.02	309.79	171.36	40.66	21.13	33.30	34.71	41.48	52.16	52.91
Cash conversion cycle	days	31.22	31.94	34.00	35.75	33.83	40.14	39.91	40.34	39.00	-7.94	-20.70	-85.24	-14.38	49.90	40.76	34.44	30.88	35.22	35.85	35.76

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.70 + 49.11 – 47.59
= 31.22

The cash conversion cycle of American Axle & Manufacturing Holdings Inc has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 37.72 days, which decreased slightly to 37.64 days in Q2 2022. However, the cycle increased to 38.56 days in Q3 2022 before declining to 32.25 days in Q4 2022.

In the first quarter of 2023, the cash conversion cycle increased to 33.96 days, followed by a further increase to 31.95 days in Q2 2023. The cycle then decreased slightly to 29.90 days in Q3 2023 and remained relatively stable at 29.67 days in Q4 2023.

Overall, the trend in the cash conversion cycle shows some variability but seems to have improved in recent quarters, indicating potential efficiencies in managing the company's inventory, accounts receivables, and accounts payables. A lower cash conversion cycle signifies that the company is able to convert its inventory and receivables into cash more effectively, which is generally a positive indication of operational efficiency and liquidity management.