Corteva Inc (CTVA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 201.74 | 213.55 | 182.63 | 229.91 | 253.84 | 229.21 | 199.50 | 229.28 | 238.22 | 194.57 | 155.25 | 191.08 | 205.07 | 177.17 | 146.22 | 182.16 | 209.47 | 190.90 | 155.67 | 186.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 201.74 | 213.55 | 182.63 | 229.91 | 253.84 | 229.21 | 199.50 | 229.28 | 238.22 | 194.57 | 155.25 | 191.08 | 205.07 | 177.17 | 146.22 | 182.16 | 209.47 | 190.90 | 155.67 | 186.07 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 201.74 + — – —
= 201.74
The cash conversion cycle of Corteva Inc has been fluctuating over the past few years, indicating variations in the company's efficiency in managing its working capital. The cycle measures the time it takes for the company to convert its investments in raw materials into cash received from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 146.22 days to a high of 253.84 days. A lower cash conversion cycle is generally favorable as it signifies that the company is able to quickly collect cash from sales and is efficiently managing its inventories and receivables.
A downward trend in the cash conversion cycle, such as the periods from June 30, 2021, to June 30, 2022, may indicate improvements in working capital management, leading to faster cash generation. Conversely, an upward trend in the cycle, as seen from December 31, 2022, to December 31, 2024, may suggest delays in cash collection or inefficient management of inventory or receivables.
It is essential for Corteva Inc to continually monitor and optimize its cash conversion cycle to ensure efficient utilization of its working capital and to enhance its overall financial performance.AlgorithmException
Peer comparison
Dec 31, 2024