Carlisle Companies Incorporated (CSL)
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 | 55.37 | 43.39 | 61.63 | 63.18 | 55.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 55.37 | 43.39 | 61.63 | 63.18 | 55.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.37 + — – —
= 55.37
The cash conversion cycle of Carlisle Companies Incorporated has shown some fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 55.76 days, indicating that it took approximately 55.76 days for Carlisle to convert its investments in inventory and accounts receivable into cash.
By the end of December 31, 2021, the cash conversion cycle increased to 63.18 days, suggesting a longer period for the company to convert its investments into cash. However, in the following year, by December 31, 2022, the cycle decreased to 61.63 days, showing a slight improvement in the efficiency of the company's cash management.
Subsequently, by December 31, 2023, the cash conversion cycle significantly improved to 43.39 days, indicating that Carlisle was able to convert its investments into cash more quickly. However, by the end of December 31, 2024, the cycle increased again to 55.37 days, although still lower than the previous year's figure.
Overall, the fluctuation in Carlisle's cash conversion cycle over the past five years suggests some variability in the efficiency of the company's cash management and working capital utilization. It would be important for the management to analyze the reasons behind these fluctuations and work towards maintaining a more consistent and optimized cash conversion cycle in the future.
Peer comparison
Dec 31, 2024