Corteva Inc (CTVA)
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 | 208.07 | 250.21 | 238.22 | 205.07 | 209.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 208.07 | 250.21 | 238.22 | 205.07 | 209.47 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 208.07 + — – —
= 208.07
The cash conversion cycle for Corteva Inc has shown some fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle stood at 209.47 days, improving slightly to 205.07 days by December 31, 2021. However, there was a significant increase in the cycle to 238.22 days by the end of December 31, 2022, and a further rise to 250.21 days by the end of December 31, 2023. The cycle then decreased back to 208.07 days as of December 31, 2024.
A longer cash conversion cycle indicates that Corteva Inc takes a longer time to convert its investments in inventory and accounts receivable into cash from sales. This may imply increased working capital needs or inefficiencies in managing inventory and accounts receivable, which could impact the company's liquidity and profitability. Monitoring and potentially optimizing the cash conversion cycle could be crucial for Corteva Inc to enhance its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024