Caterpillar Inc (CAT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148.05 | 138.05 | 141.68 | 142.46 | 140.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 148.05 | 138.05 | 141.68 | 142.46 | 140.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.05 + — – —
= 148.05
The cash conversion cycle of Caterpillar Inc has shown some fluctuations over the past five years. In 2020, the cash conversion cycle was 140.26 days, which increased slightly to 142.46 days in 2021. However, in 2022, the cycle decreased to 141.68 days before further dropping to 138.05 days in 2023. The cycle then increased notably in 2024 to 148.05 days.
Overall, the trend in Caterpillar Inc's cash conversion cycle indicates some variability in the efficiency of its working capital management over the years. It is essential for the company to monitor and potentially improve its cash conversion cycle to ensure optimal utilization of cash resources and operational effectiveness.
Peer comparison
Dec 31, 2024