Carlisle Companies Incorporated (CSL)
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 | 44.71 | 47.41 | 67.75 | 74.58 | 42.44 | 60.11 | 56.55 | 57.19 | 50.66 | 48.74 | 42.91 | 50.72 | 41.65 | 51.38 | 55.68 | 56.72 | 54.18 | 54.53 | 54.77 | 56.03 |
| Days of sales outstanding (DSO) | days | 48.96 | 60.82 | 72.26 | 50.16 | 51.13 | 64.81 | 72.17 | 68.20 | 61.81 | 72.42 | 63.32 | 63.11 | 55.34 | 62.70 | 57.18 | 52.54 | 59.40 | 66.31 | 71.94 | 61.78 |
| Number of days of payables | days | 30.35 | 39.44 | 44.91 | 35.02 | 22.41 | 37.16 | 39.80 | 40.87 | 36.20 | 42.71 | 35.91 | 34.49 | 27.38 | 32.46 | 32.66 | 34.06 | 34.73 | 39.88 | 40.56 | 38.78 |
| Cash conversion cycle | days | 63.33 | 68.80 | 95.10 | 89.71 | 71.17 | 87.75 | 88.92 | 84.52 | 76.27 | 78.45 | 70.33 | 79.33 | 69.61 | 81.63 | 80.20 | 75.20 | 78.85 | 80.97 | 86.15 | 79.04 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.71 + 48.96 – 30.35
= 63.33
The cash conversion cycle for Carlisle Companies Inc. has shown fluctuations over the past eight quarters, indicating variations in the efficiency of the company's working capital management. The cycle measures the time it takes for the company to convert its investments in inventory and accounts receivable into cash flow from sales.
In Q4 2023, the cash conversion cycle improved to 63.33 days compared to the previous quarter at 58.40 days. This could suggest better management of inventory and receivables, leading to a quicker conversion into cash. However, in Q3 2023, there was a slight increase in the cycle to 77.07 days, which may indicate a potential delay in converting investments into cash compared to the previous quarter.
Looking at the trend, in the first half of 2023, the cash conversion cycle appeared to be longer, with Q2 2023 at 77.99 days and Q1 2023 at 77.05 days. This suggests possible challenges in managing working capital efficiency during that period. In contrast, the last two quarters of 2022 showed higher cash conversion cycle days, with Q3 2022 at 87.81 days and Q2 2022 at 93.07 days, indicating a potential improvement in working capital management compared to early 2023.
Overall, Carlisle Companies Inc. has experienced fluctuations in its cash conversion cycle, with some quarters showing improvements while others had longer cycles. It is essential for the company to continue monitoring and optimizing its working capital management to ensure efficient cash flow conversion.
Peer comparison
Dec 31, 2023