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 | ||
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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