Cognex Corporation (CGNX)

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	84.11	102.12	74.36	69.94	42.92
Days of sales outstanding (DSO)	days	58.35	51.55	46.38	47.38	58.96
Number of days of payables	days	20.32	13.50	16.45	27.24	11.48
Cash conversion cycle	days	122.14	140.17	104.28	90.08	90.40

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.11 + 58.35 – 20.32
= 122.14

The cash conversion cycle of Cognex Corporation has shown fluctuations over the years based on the provided data. Starting at 90.40 days on December 31, 2020, it decreased slightly to 90.08 days by the end of 2021. However, there was a notable increase to 104.28 days by December 31, 2022. This trend continued with a significant jump to 140.17 days by the end of 2023, indicating potential challenges in managing the company's working capital efficiently. By December 31, 2024, there was a decrease to 122.14 days, suggesting potential efforts to streamline operational processes. Overall, the varying cash conversion cycle reflects the company's ability to manage its cash flow, inventory, and receivables effectively over the years.