Crown Holdings Inc (CCK)
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 | 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 | 60.32 | 64.86 | 67.91 | 68.16 |
| Days of sales outstanding (DSO) | days | 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 | 47.81 | 56.44 | 57.10 | 52.56 |
| Number of days of payables | days | 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 | 98.16 | 89.80 | 87.06 | 81.86 |
| Cash conversion cycle | days | 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 | 9.97 | 31.50 | 37.95 | 38.86 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.98 + 54.41 – 80.76
= 26.62
The cash conversion cycle of Crown Holdings, Inc. has experienced fluctuations over the past eight quarters. The trend indicates that the cycle was shortest in Q4 of 2022 at 25.94 days and reached its peak in Q1 of 2023 at 45.06 days. In Q4 of 2023, the cycle reduced to 19.90 days, showing a positive improvement compared to the previous periods.
The overall analysis suggests that the company has generally managed to shorten its cash conversion cycle in the most recent quarter, which could indicate more efficient management of working capital and potentially better liquidity. However, it is important to monitor future performance to see if this improvement is sustained over time.
Peer comparison
Dec 31, 2023