Cencora Inc. (COR)
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 | 25.96 | 25.16 | 25.03 | 25.88 | 26.24 | 24.66 | 25.34 | 25.58 | 27.85 | 27.09 | 27.63 | 24.79 | 25.43 | 24.88 | 23.86 | 22.37 | 24.10 | 23.14 | 23.83 | 24.39 |
| Days of sales outstanding (DSO) | days | 29.03 | 29.22 | 29.89 | 28.79 | 28.25 | 28.49 | 28.96 | 29.00 | 28.61 | 31.37 | 32.06 | 26.90 | 28.53 | 27.55 | 25.75 | 29.23 | 25.20 | 25.18 | 24.69 | 25.47 |
| Number of days of payables | days | 66.44 | 66.07 | 64.99 | 65.24 | 65.30 | 63.70 | 62.94 | 62.99 | 66.01 | 67.01 | 67.26 | 60.13 | 64.55 | 62.65 | 58.69 | 61.91 | 60.18 | 59.39 | 58.92 | 60.46 |
| Cash conversion cycle | days | -11.45 | -11.69 | -10.07 | -10.56 | -10.81 | -10.55 | -8.64 | -8.42 | -9.55 | -8.55 | -7.56 | -8.44 | -10.59 | -10.22 | -9.07 | -10.30 | -10.88 | -11.07 | -10.40 | -10.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.96 + 29.03 – 66.44
= -11.45
The cash conversion cycle of Cencora Inc. has exhibited some fluctuations over the past eight quarters. The company's cash conversion cycle, which measures the time it takes to convert resources into cash flows, has generally been negative, indicating efficient management of working capital.
From Dec 31, 2022, to Dec 31, 2023, the cash conversion cycle remained negative, with the cycle fluctuating between -8.42 days and -11.69 days. While a negative cash conversion cycle can signify that the company is efficiently managing its working capital and collecting receivables, it's important to note that negative cycles may be the result of the company paying suppliers more quickly than collecting from customers.
The fluctuations in the cash conversion cycle demonstrate the company's ability to effectively manage its liquidity and working capital. However, it is crucial to closely monitor the trend over time and understand the underlying reasons for the changes to evaluate the effectiveness of the company's cash management strategies and working capital processes.
Peer comparison
Dec 31, 2023