Crane NXT Co (CXT)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 50.28 | 18.42 | 75.64 | 79.54 | 88.06 |
| Days of sales outstanding (DSO) | days | 56.38 | 51.34 | 50.59 | 53.78 | 65.90 |
| Number of days of payables | days | 34.09 | 13.87 | 46.10 | 36.82 | 59.91 |
| Cash conversion cycle | days | 72.57 | 55.89 | 80.14 | 96.50 | 94.05 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.28 + 56.38 – 34.09
= 72.57
The cash conversion cycle of Crane NXT Co has shown varying trends over the past five years. In 2023, the company's cash conversion cycle increased to 72.57 days compared to the previous year. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash.
In 2022, the company managed to reduce its cash conversion cycle to 55.89 days, reflecting a more efficient management of working capital compared to the previous year. However, the cycle increased in 2021 to 80.14 days, suggesting a slowdown in the collection of receivables or an increase in the inventory holding period.
The cash conversion cycle was even longer in 2020 at 96.50 days, pointing to potential liquidity challenges or inefficiencies in managing operating cash flows. Back in 2019, the cycle was also high at 94.05 days, indicating a consistent pattern of prolonged cash conversion.
Overall, Crane NXT Co's cash conversion cycle has fluctuated over the years, indicating potential areas for improvement in managing working capital efficiently to enhance the company's financial performance and liquidity position.
Peer comparison
Dec 31, 2023