Crane Company (CR)
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 | 109.90 | 100.58 | 78.88 | 83.00 | 82.69 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 109.90 | 100.58 | 78.88 | 83.00 | 82.69 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 109.90 + — – —
= 109.90
The cash conversion cycle of Crane Company has shown fluctuations over the past five years. In December 31, 2020, the cash conversion cycle was 82.69 days, which increased slightly to 83.00 days by December 31, 2021. However, there was a significant improvement by December 31, 2022, with the cycle decreasing to 78.88 days.
Unfortunately, the trend reversed in the following years. By December 31, 2023, the cash conversion cycle extended to 100.58 days, indicating a prolonged period for Crane Company to convert its investments in inventory and other resources into cash. This situation worsened by December 31, 2024, as the cycle further increased to 109.90 days.
Overall, the fluctuating trend in Crane Company's cash conversion cycle indicates variability in managing its working capital efficiency over the years. It is essential for Crane Company to focus on strategies to optimize its cash conversion cycle to improve its liquidity and overall financial health.
Peer comparison
Dec 31, 2024