Carrier Global Corp (CARR)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 222.49 360.76 221.38 199.32
Days of sales outstanding (DSO) days 42.20 47.07 43.22 55.53
Number of days of payables days 275.18 387.14 262.29 236.89
Cash conversion cycle days -10.49 20.69 2.32 17.96

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 222.49 + 42.20 – 275.18
= -10.49

To analyze Carrier Global Corp's cash conversion cycle over the past five years, we observe a fluctuating trend. In 2019, the company's cash conversion cycle was 43.26 days, which decreased to 49.07 days in 2020, indicating a less efficient cash conversion process. However, in 2021, the cycle improved to 33.47 days, reflecting a shorter time taken to convert inputs into cash inflows.

By the end of 2022, the cash conversion cycle further decreased to 45.93 days, suggesting a slight increase in the time it takes for the company to convert its investments in inventory and other resources into cash receipts. Notably, in 2023, there was a significant improvement in the cash conversion cycle to 28.79 days, signaling enhanced efficiency in managing working capital and cash flows.

Overall, although the cash conversion cycle has displayed some variability over the years, the recent improvement in 2023 indicates that Carrier Global Corp has been successful in optimizing its working capital management, potentially leading to better liquidity and operational performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Carrier Global Corp
CARR
-10.49
AAON Inc
AAON
113.23
Lennox International Inc
LII
78.04

See also:

Carrier Global Corp Cash Conversion Cycle