CNH Industrial N.V. (CNH)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 146.92 | 138.70 | 137.56 | 120.20 | 137.52 | 135.98 | 127.54 | 104.54 | 123.37 | 131.77 | 136.62 | 109.07 | 430.99 | 331.10 | 260.66 | 197.10 | 118.31 | 121.88 | 127.53 | 118.40 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 146.92 | 138.70 | 137.56 | 120.20 | 137.52 | 135.98 | 127.54 | 104.54 | 123.37 | 131.77 | 136.62 | 109.07 | 430.99 | 331.10 | 260.66 | 197.10 | 118.31 | 121.88 | 127.53 | 118.40 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 146.92 + — – —
= 146.92
The cash conversion cycle of CNH Industrial N.V. reflects the efficiency in managing its working capital, specifically the time it takes to convert its investments in inventory and receivables into cash received from sales.
Based on the provided data, we observe fluctuations in the cash conversion cycle over the time period analyzed. In the most recent quarter, ending September 30, 2024, the cash conversion cycle stood at 146.92 days, indicating a prolonged period required to complete the cycle compared to the previous quarter. This could suggest potential delays in converting inventory and receivables into cash or changes in payment terms impacting the cycle's duration.
A longer cash conversion cycle may tie up more resources in working capital, potentially affecting liquidity and overall financial performance. Conversely, a shorter cycle indicates a more efficient management of working capital, allowing the company to generate cash more quickly from its operational activities.
It is important for CNH Industrial N.V. to monitor and manage its cash conversion cycle effectively to optimize its working capital utilization and maintain healthy cash flows. By identifying factors influencing the cycle and implementing strategies to streamline operations, the company can enhance its financial efficiency and profitability.
Peer comparison
Sep 30, 2024