Dana Inc (DAN)
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 | 59.88 | 65.47 | 59.92 | 60.88 | 63.36 | 64.46 | 65.82 | 66.03 | 62.52 | 63.85 | 65.90 | 71.05 | 70.41 | 71.79 | 68.54 | 67.86 | 64.67 | 62.46 | 63.11 | 60.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 59.88 | 65.47 | 59.92 | 60.88 | 63.36 | 64.46 | 65.82 | 66.03 | 62.52 | 63.85 | 65.90 | 71.05 | 70.41 | 71.79 | 68.54 | 67.86 | 64.67 | 62.46 | 63.11 | 60.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.88 + — – —
= 59.88
The cash conversion cycle of Dana Inc provides insight into how efficiently the company manages its working capital. The trend in the cash conversion cycle from March 31, 2020, to December 31, 2024, shows fluctuations over time.
The cash conversion cycle reflects the time it takes for Dana Inc to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital, while a longer cycle may suggest inefficiencies in the operations.
From the data provided, we observe that Dana Inc's cash conversion cycle ranged from a low of 59.88 days on December 31, 2024, to a high of 71.79 days on September 30, 2021. Overall, the company seems to have made efforts to reduce its cash conversion cycle towards the end of the period, indicating potential improvements in working capital management.
It is important for Dana Inc to continuously monitor and manage its cash conversion cycle as it directly impacts the company's liquidity and overall financial health. By optimizing the cycle, Dana Inc can free up cash that can be reinvested in the business or used to meet financial obligations more efficiently.
Peer comparison
Dec 31, 2024