Crane Company (CR)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 71.68 | |||
| Days of sales outstanding (DSO) | days | 54.19 | |||
| Number of days of payables | days | 36.36 | |||
| Cash conversion cycle | days | 89.52 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 71.68 + 54.19 – 36.36
= 89.52
The cash conversion cycle for Crane Company as of December 31, 2023, is 89.52 days. This metric represents the length of time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash from its operations. In this case, the company's cash conversion cycle of 89.52 days suggests that it takes approximately 3 months to complete the cycle of selling inventory, collecting receivables, and paying suppliers. Analyzing trends in this metric over different quarters can provide insights into the company's operational efficiency and effectiveness in managing its cash flow.
Peer comparison
Dec 31, 2023