Crane NXT Co (CXT)
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 | 36.96 | 30.85 | 26.72 | 63.57 | 18.93 | 61.53 | 65.45 | 75.92 | 79.64 | 80.07 | 87.50 | 88.85 | 87.32 | 88.15 | 89.42 | 87.18 | 79.33 | 77.41 | 73.07 | 74.40 |
| Days of sales outstanding (DSO) | days | 41.17 | 16.67 | 18.78 | 46.93 | 44.27 | 76.90 | 62.37 | 54.99 | 52.26 | 58.25 | 55.70 | 63.15 | 57.20 | 55.03 | 54.10 | 62.03 | 61.71 | 59.35 | 58.86 | 62.00 |
| Number of days of payables | days | 25.06 | 20.66 | 15.50 | 31.87 | 14.25 | 34.05 | 36.63 | 37.68 | 48.53 | 43.88 | 46.38 | 47.50 | 40.42 | 43.65 | 42.61 | 44.56 | 53.97 | 44.66 | 46.70 | 44.44 |
| Cash conversion cycle | days | 53.08 | 26.86 | 30.01 | 78.63 | 48.95 | 104.38 | 91.19 | 93.23 | 83.36 | 94.45 | 96.81 | 104.49 | 104.10 | 99.53 | 100.91 | 104.65 | 87.07 | 92.11 | 85.23 | 91.95 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.96 + 41.17 – 25.06
= 53.08
Crane NXT Co's cash conversion cycle shows significant fluctuations over the past several quarters. The company experienced a peak cash conversion cycle of 104.49 days in the second quarter of 2021, indicating a longer period to convert resources into cash. However, there was a notable improvement in the cash conversion cycle in the third quarter of 2021, where it decreased to 87.07 days.
Subsequently, Crane NXT Co managed to lower its cash conversion cycle further, reaching a low of 26.86 days in the second quarter of 2023. This suggests that the company was able to efficiently manage its working capital and convert its investments in inventory and receivables into cash more quickly.
However, the cash conversion cycle increased significantly in the first quarter of 2023, reaching 78.63 days, indicating a potential delay in the conversion of resources into cash during that period.
Overall, Crane NXT Co should continue to focus on optimizing its cash conversion cycle to ensure efficient management of working capital and enhance its cash flow performance.
Peer comparison
Dec 31, 2023