Crane Company (CR)
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 | 109.90 | 103.76 | 103.94 | 106.18 | 88.53 | 79.83 | 74.69 | 90.39 | 80.96 | 80.42 | 80.78 | 112.85 | 102.88 | 103.46 | 108.03 | 82.34 | 82.69 | 74.30 | 76.92 | 76.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 109.90 | 103.76 | 103.94 | 106.18 | 88.53 | 79.83 | 74.69 | 90.39 | 80.96 | 80.42 | 80.78 | 112.85 | 102.88 | 103.46 | 108.03 | 82.34 | 82.69 | 74.30 | 76.92 | 76.44 |
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 few years. It measures the average number of days it takes for the company to convert its investments in inventory into cash from sales.
From March 31, 2020, to June 30, 2020, the cash conversion cycle slightly increased from 76.44 days to 76.92 days. However, by September 30, 2020, it decreased to 74.30 days before rising significantly to 82.69 days by December 31, 2020.
The cycle continued to rise in the following quarters, reaching a peak of 112.85 days on March 31, 2022. There was a notable decrease in the cash conversion cycle by June 30, 2022, down to 80.78 days, indicating an improvement in the company's efficiency in managing its working capital.
Over the next few quarters, the cycle remained relatively stable, ranging from 74.69 days on June 30, 2023, to 109.90 days on December 31, 2024. The trend suggests that Crane Company has experienced fluctuations in its cash conversion cycle, indicating varying efficiencies in managing its inventory, receivables, and payables over time.
Analyzing the cash conversion cycle helps stakeholders understand how quickly the company can turn its investments in inventory into cash inflows, providing insights into operational efficiency and working capital management.
Peer comparison
Dec 31, 2024