CF Industries Holdings Inc (CF)
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 | 29.29 | 27.76 | 28.07 | 24.70 | 26.88 | 26.57 | 23.87 | 29.59 | 32.49 | 34.06 | 37.21 | 39.04 | 35.88 | 41.37 | 29.99 | 41.73 | 31.52 | 33.75 | 30.48 | 40.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 29.29 | 27.76 | 28.07 | 24.70 | 26.88 | 26.57 | 23.87 | 29.59 | 32.49 | 34.06 | 37.21 | 39.04 | 35.88 | 41.37 | 29.99 | 41.73 | 31.52 | 33.75 | 30.48 | 40.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.29 + — – —
= 29.29
The cash conversion cycle for CF Industries Holdings Inc has shown fluctuations over the periods provided. The company's cash conversion cycle, which represents the time it takes for the company to convert its investments in raw materials into cash receipts from sales, has varied between a low of 23.87 days on June 30, 2023, and a high of 41.73 days on March 31, 2021.
Overall, the trend in the cash conversion cycle has been somewhat volatile but generally improving in recent periods. The company managed to significantly reduce the cycle time from around 41.73 days in March 31, 2021, to 23.87 days in June 30, 2023, indicating more efficient management of working capital and operating activities.
However, there was a slight uptick in the cycle time towards the end of 2023 and into 2024, with the cycle ranging between 24.70 days on March 31, 2024, and 29.29 days on December 31, 2024. This slight increase could signal potential challenges in managing inventories, receivables, and payables efficiently during those periods.
It is essential for CF Industries Holdings Inc to continue monitoring and managing its cash conversion cycle effectively to ensure optimal cash flow management and operational efficiency. By identifying areas for improvement and implementing strategies to streamline the cycle further, the company can enhance its financial performance and competitiveness in the industry.
Peer comparison
Dec 31, 2024