Curtiss-Wright Corporation (CW)
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 | 75.76 | 83.23 | 81.73 | 82.69 | 77.85 | 84.98 | 87.52 | 87.13 | 81.63 | 86.67 | 83.76 | 77.16 | 69.90 | 99.16 | 103.88 | 106.08 | 100.99 | 109.63 | 107.83 | 101.95 |
| Days of sales outstanding (DSO) | days | 81.01 | 84.70 | 82.37 | 80.06 | 77.33 | 85.47 | 83.60 | 82.51 | 84.76 | 85.60 | 84.20 | 79.25 | 76.63 | 97.65 | 95.62 | 94.42 | 89.86 | 97.43 | 90.17 | 91.67 |
| Number of days of payables | days | 34.59 | 31.79 | 32.86 | 34.96 | 37.22 | 33.61 | 37.47 | 34.26 | 45.04 | 31.46 | 29.77 | 29.06 | 35.94 | 36.22 | 38.66 | 38.18 | 47.38 | 37.61 | 40.12 | 38.85 |
| Cash conversion cycle | days | 122.19 | 136.14 | 131.24 | 127.79 | 117.96 | 136.84 | 133.65 | 135.39 | 121.36 | 140.81 | 138.19 | 127.35 | 110.58 | 160.59 | 160.84 | 162.31 | 143.46 | 169.45 | 157.89 | 154.77 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 75.76 + 81.01 – 34.59
= 122.19
The cash conversion cycle of Curtiss-Wright Corporation has shown fluctuations over the years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we observe that the cash conversion cycle fluctuated between a high of 169.45 days on September 30, 2020, to a low of 110.58 days on December 31, 2021. This indicates that the company improved its efficiency in managing its working capital during that period.
However, in recent periods, the cash conversion cycle has been fluctuating around an average of about 130 days. The cycle has somewhat stabilized, showing a consistent trend in the last several quarters.
Analyzing the recent data, we notice a slight increase in the cash conversion cycle from 127.79 days on March 31, 2024, to 136.14 days on September 30, 2024. This increase indicates that the company may be taking longer to convert its investments into cash, which could be a signal of potential issues in managing working capital efficiently.
Overall, Curtiss-Wright Corporation's cash conversion cycle is relatively stable, but a slight increase in the cycle in recent periods may warrant further investigation to ensure efficient working capital management and optimal cash flow generation.
Peer comparison
Dec 31, 2024