Curtiss-Wright Corporation (CW)

Cash conversion cycle

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 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 97.57 98.93 101.35 104.88
Days of sales outstanding (DSO) days 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 92.75 94.77 94.32 88.40
Number of days of payables days 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 50.99 38.97 40.38 41.40
Cash conversion cycle days 117.96 136.84 133.65 135.39 121.36 140.81 138.19 127.35 110.58 160.59 160.84 162.31 143.46 169.45 157.89 154.77 139.33 154.74 155.29 151.88

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.85 + 77.33 – 37.22
= 117.96

The cash conversion cycle for Curtiss-Wright Corp. has shown fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle decreased to 148.63 days compared to the previous quarter, indicating an improvement in efficiency in managing inventory, accounts receivable, and accounts payable. This suggests that the company was able to collect cash from sales and convert it back into cash investments more quickly during this period.

However, in Q3 and Q2 2023, the cash conversion cycle increased to 170.02 days and 167.01 days, respectively, reflecting a longer time taken to convert resources into cash flows. This may indicate challenges in managing working capital components efficiently during these quarters.

Looking back further, in Q1 2023, the cash conversion cycle was at 170.72 days, which was similar to the level seen in Q3 2023. This prolonged cycle may be a result of slower inventory turnover or delayed collection of receivables during this period.

Comparing year-over-year data, the cash conversion cycle in Q4 2023 is lower than in Q4 2022 (152.77 days), showing some improvement over the past year. However, Q3 2023, Q2 2023, and Q1 2023 data indicate increased cycle times compared to the same periods in 2022, suggesting a potential need for enhanced working capital management strategies.

Overall, monitoring and managing the cash conversion cycle is crucial for Curtiss-Wright Corp. to ensure efficient operations and liquidity management. Identifying and addressing factors contributing to fluctuations in the cycle can help the company optimize its working capital and cash flow processes.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Curtiss-Wright Corporation
CW
117.96
Eaton Corporation PLC
ETN
79.94
Enerpac Tool Group Corp
EPAC
101.95