Crown Holdings Inc (CCK)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.65 | 50.23 | 51.19 | 53.68 | 52.98 | 53.87 | 60.29 | 62.80 | 60.89 | 74.65 | 77.77 | 77.88 | 66.20 | 55.98 | 53.51 | 70.94 | 52.28 | 71.57 | 70.62 | 61.82 |
| Days of sales outstanding (DSO) | days | 50.67 | 50.04 | 56.81 | 52.75 | 54.41 | 54.55 | 58.05 | 57.69 | 53.25 | 62.06 | 64.06 | 67.86 | 59.27 | 56.84 | 56.62 | 63.92 | 53.70 | 65.33 | 54.37 | 48.62 |
| Number of days of payables | days | 78.55 | 79.56 | 77.26 | 71.81 | 80.76 | 71.71 | 73.46 | 72.41 | 83.84 | 98.72 | 112.39 | 109.06 | 110.69 | 84.87 | 80.19 | 97.60 | 88.63 | 101.12 | 88.25 | 76.97 |
| Cash conversion cycle | days | 18.77 | 20.70 | 30.75 | 34.61 | 26.62 | 36.71 | 44.87 | 48.08 | 30.30 | 38.00 | 29.44 | 36.68 | 14.78 | 27.94 | 29.94 | 37.26 | 17.35 | 35.78 | 36.74 | 33.46 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.65 + 50.67 – 78.55
= 18.77
The cash conversion cycle of Crown Holdings Inc has shown fluctuations over the quarters. The cash conversion cycle is a measure of how quickly a company can convert its inventory into cash flow through sales.
From the data provided, Crown Holdings Inc had a cash conversion cycle that ranged from 14.78 days to 48.08 days during the period from March 31, 2020, to December 31, 2024. A lower number of days indicates a shorter period for the company to convert its inventory and accounts receivable into cash.
In general, a decreasing trend in the cash conversion cycle is considered positive as it implies efficient inventory management and faster conversion of sales into cash. Crown Holdings Inc experienced a decline in its cash conversion cycle from 33.46 days on March 31, 2020, to 18.77 days on December 31, 2024.
However, the company also witnessed fluctuations in its cash conversion cycle during this period. For instance, there was a significant increase in the cash conversion cycle from 14.78 days on December 31, 2021, to 48.08 days on March 31, 2023. Subsequently, the company managed to reduce the cash conversion cycle to 18.77 days by the end of December 31, 2024.
Overall, the trend in the cash conversion cycle of Crown Holdings Inc shows variability over time, with periods of improvement and fluctuations. This indicates the company's effectiveness in managing its working capital and converting inventory and receivables into cash efficiently.
Peer comparison
Dec 31, 2024