CF Industries Holdings Inc (CF)
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 | 29.54 | 26.71 | 32.49 | 35.88 | 31.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 29.54 | 26.71 | 32.49 | 35.88 | 31.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.54 + — – —
= 29.54
The cash conversion cycle for CF Industries Holdings Inc has shown fluctuations over the years, indicating changes in its efficiency in managing cash flows.
In December 2020, the company's cash conversion cycle stood at 31.52 days, reflecting the time it takes to convert its investments in raw materials into cash from the sale of products. By the end of December 2021, the cycle increased to 35.88 days, suggesting a potential slowdown in the conversion of inventory to sales and then into cash.
However, there was a slight improvement by December 2022, with the cash conversion cycle decreasing to 32.49 days, indicating a more efficient management of working capital. The cycle then decreased further to 26.71 days by December 2023, signaling an improvement in converting investments into cash quickly.
By December 2024, the cycle increased slightly to 29.54 days, but it still remained lower than the previous year, indicating a relatively efficient cash conversion process for the company.
Overall, despite some fluctuations, CF Industries Holdings Inc has shown a trend towards a more efficient cash conversion cycle over the years, which can positively impact its liquidity and financial performance.
Peer comparison
Dec 31, 2024