Crane NXT Co (CXT)
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 | 64.32 | 78.01 | 83.25 | 83.74 | 54.92 | 45.18 | 38.71 | 109.87 | 95.42 | 92.38 | 90.21 | 82.46 | 79.06 | 81.24 | 88.24 | 86.77 | 87.32 | 88.15 | 89.42 | 87.18 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 57.20 | 55.03 | 54.10 | 62.03 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 40.42 | 43.65 | 42.61 | 44.56 |
| Cash conversion cycle | days | 64.32 | 78.01 | 83.25 | 83.74 | 54.92 | 45.18 | 38.71 | 109.87 | 95.42 | 92.38 | 90.21 | 82.46 | 79.06 | 81.24 | 88.24 | 86.77 | 104.10 | 99.53 | 100.91 | 104.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.32 + — – —
= 64.32
The cash conversion cycle for Crane NXT Co has shown fluctuations over the periods provided in the dataset.
From March 31, 2020, to December 31, 2021, the cash conversion cycle decreased from 104.65 days to 79.06 days, indicating improvements in managing cash flow, reducing the time it takes to convert inventory and credit sales into cash.
However, the cycle increased from March 31, 2022, touching a peak at 109.87 days by the end of that quarter. This indicates a potential challenge in managing working capital efficiently during that period.
Subsequently, from June 30, 2023, to December 31, 2024, there was a significant decrease in the cash conversion cycle, reaching a low of 38.71 days by June 30, 2023, and gradually increasing to 64.32 days by December 31, 2024. This downward trend suggests a remarkable improvement in the company's cash flow management, indicating enhancements in inventory turnover and collection of accounts receivable.
Overall, it is crucial for Crane NXT Co to closely monitor its cash conversion cycle to ensure efficient management of working capital and optimize cash flows for continued financial health and stability.
Peer comparison
Dec 31, 2024