Corteva Inc (CTVA)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 182.74 | 173.70 | 143.76 | 145.65 | 148.76 |
| Days of sales outstanding (DSO) | days | 116.28 | 119.21 | 112.17 | 126.47 | 145.73 |
| Number of days of payables | days | 113.37 | 124.84 | 114.51 | 107.85 | 109.44 |
| Cash conversion cycle | days | 185.66 | 168.08 | 141.42 | 164.27 | 185.04 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 182.74 + 116.28 – 113.37
= 185.66
The cash conversion cycle of Corteva Inc has shown variability over the past five years, reflecting the company's efficiency in managing its cash flow and working capital. From 2019 to 2023, the trend indicates fluctuations in the number of days it takes for Corteva to convert its resource inputs into cash inflows.
In 2021, the cash conversion cycle reached its lowest point at 153.90 days, indicating a more efficient cash management process. This was followed by an increase in 2022 to 186.23 days, suggesting potential challenges in working capital management that year. However, in 2023, the cycle further extended to 212.65 days, signifying a potential delay in the conversion of resources into cash.
Overall, the upward trend in the cash conversion cycle from 2021 to 2023 may raise concerns about Corteva's liquidity and operating efficiency. It is essential for the company to closely monitor and manage its working capital components to optimize cash flow and improve its overall financial performance in the future.
Peer comparison
Dec 31, 2023