CTS Corporation (CTS)
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 | 59.87 | 60.94 | 60.39 | 55.04 | 58.75 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 59.87 | 60.94 | 60.39 | 55.04 | 58.75 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.87 + — – —
= 59.87
Based on the data provided, the cash conversion cycle for CTS Corporation has shown some fluctuations over the past five years.
As of December 31, 2020, the cash conversion cycle was 58.75 days, which decreased to 55.04 days by December 31, 2021. However, there was a slight increase in the cash conversion cycle to 60.39 days by December 31, 2022, and further to 60.94 days by December 31, 2023.
By December 31, 2024, the cash conversion cycle decreased slightly to 59.87 days. The cash conversion cycle measures how efficiently a company manages its cash flows from operating activities, inventory turnover, and accounts receivable and payable.
Overall, CTS Corporation has shown some variability in its cash conversion cycle over the years, indicating potential changes in its working capital management. A lower cash conversion cycle generally indicates better efficiency in converting inventory and accounts receivable into cash, while a higher cycle may suggest inefficiencies in the company's cash flow management.
Peer comparison
Dec 31, 2024