Curtiss-Wright Corporation (CW)
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 | 75.76 | 77.85 | 81.63 | 69.90 | 100.99 |
| Days of sales outstanding (DSO) | days | 97.65 | 95.62 | 105.18 | 95.85 | 89.86 |
| Number of days of payables | days | 34.59 | 37.22 | 45.04 | 35.94 | 47.38 |
| Cash conversion cycle | days | 138.82 | 136.25 | 141.78 | 129.80 | 143.46 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 75.76 + 97.65 – 34.59
= 138.82
The cash conversion cycle of Curtiss-Wright Corporation has experienced some fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 143.46 days, indicating a relatively lengthy period for converting its investments in inventory and other resources back into cash.
Over the following years, there was a slight improvement in efficiency as the cash conversion cycle decreased to 129.80 days by December 31, 2021. However, this trend was not sustained, as the cycle increased to 141.78 days by December 31, 2022, before dropping to 136.25 days by December 31, 2023.
As of the latest available data on December 31, 2024, the cash conversion cycle stood at 138.82 days. This suggests that the company is taking approximately 138.82 days on average to complete a full cash conversion cycle.
Overall, the company's management of its cash conversion cycle has shown some variability, indicating potential areas for improvement in terms of managing its working capital efficiently. Further analysis of the components of the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable payment period, may provide insights into specific areas where the company can optimize its working capital management.
Peer comparison
Dec 31, 2024