Calix Inc (CALX)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.05 | 79.69 | 64.40 | 45.52 | 40.88 |
| Days of sales outstanding (DSO) | days | 44.21 | 39.44 | 45.78 | 47.16 | 40.26 |
| Number of days of payables | days | 15.17 | 22.12 | 21.06 | 11.42 | 10.98 |
| Cash conversion cycle | days | 87.09 | 97.00 | 89.13 | 81.25 | 70.15 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.05 + 44.21 – 15.17
= 87.09
The cash conversion cycle of Calix Inc has exhibited fluctuations over the past five years. In 2023, the cash conversion cycle was 113.04 days, showing a decrease from the previous year. This suggests that Calix Inc improved its efficiency in managing cash flows, likely by reducing the time between paying suppliers and receiving cash from customers.
Comparing to the data from 2020 and 2019, where the cash conversion cycle was 98.93 days and 85.34 days respectively, the company has shown a longer cash conversion cycle in recent years. This indicates that Calix Inc may be experiencing challenges in managing its working capital effectively.
It is crucial for Calix Inc to closely monitor and manage its cash conversion cycle to ensure optimal cash flow and liquidity. By identifying areas for improvement and implementing strategies to streamline operations, the company can enhance its financial health and maximize profitability.
Peer comparison
Dec 31, 2023