Chemours Co (CC)

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	82.97	77.23	84.81	87.23	80.51	75.42	70.58	68.35	65.95	62.16	67.47	75.82	74.46	80.08	83.85	83.39	78.94	92.04	92.21	86.59
Days of sales outstanding (DSO)	days	37.86	53.07	52.99	47.66	34.42	52.05	57.69	57.14	42.79	51.62	53.80	54.15	39.37	43.28	39.57	46.93	45.80	53.58	54.27	49.18
Number of days of payables	days	71.12	52.02	58.18	67.04	70.71	72.51	72.32	68.46	69.74	66.38	68.43	74.90	66.93	56.53	50.83	62.95	67.53	71.34	70.52	74.08
Cash conversion cycle	days	49.70	78.29	79.62	67.85	44.22	54.96	55.96	57.02	39.01	47.40	52.83	55.08	46.91	66.83	72.60	67.36	57.22	74.27	75.96	61.69

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 82.97 + 37.86 – 71.12
= 49.70

The cash conversion cycle of Chemours Co has displayed fluctuations over the past few quarters. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from a low of 39.01 days to a high of 79.62 days.

A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its resources into cash quickly, which is generally a positive indicator. On the other hand, a higher cash conversion cycle may suggest inefficiencies in inventory management or collections processes, potentially leading to cash flow challenges.

The trend in Chemours Co's cash conversion cycle shows variability, with some quarters showing significant improvements while others have seen increases in the cycle length. It would be important for the company to closely monitor this metric and identify areas where operational efficiencies can be improved to manage working capital effectively and enhance cash flow generation.