Dana Inc (DAN)

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	59.55	60.72	61.02	61.28	58.05	59.26	62.28	66.99	66.30	67.32	64.08	63.16	59.69	79.54	79.68	70.08	67.59	54.23	57.99	61.54
Days of sales outstanding (DSO)	days	59.35	64.65	65.95	67.03	58.72	65.88	69.84	75.97	65.88	69.28	70.22	82.83	76.19	74.78	55.06	57.32	57.62	63.66	71.80	73.08
Number of days of payables	days	62.39	66.74	69.31	68.25	66.31	67.98	69.00	70.52	66.60	65.88	70.02	77.00	69.15	86.86	56.83	68.23	71.11	56.52	63.35	69.51
Cash conversion cycle	days	56.51	58.62	57.67	60.06	50.46	57.15	63.12	72.43	65.58	70.72	64.28	68.99	66.73	67.46	77.91	59.16	54.10	61.37	66.43	65.11

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.55 + 59.35 – 62.39
= 56.51

The cash conversion cycle of Dana Inc has shown fluctuations over the last eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales, indicating the efficiency of its working capital management.

From Q1 2022 to Q4 2022, there was a steady increase in the cash conversion cycle, reaching its peak at 70.95 days in Q1 2022. This suggests that Dana Inc took longer to convert its resources into cash during this period, possibly facing challenges in managing its inventory and accounts receivable efficiently.

However, from Q2 2022 to Q4 2023, there was a general decrease in the cash conversion cycle, indicating an improvement in the company's working capital management. The cycle reached its lowest point at 47.74 days in Q4 2022, reflecting a more efficient conversion of resources into cash.

Overall, Dana Inc has experienced fluctuations in its cash conversion cycle, with periods of both improvements and challenges in working capital management. It is crucial for the company to continue monitoring and optimizing its cash conversion cycle to ensure effective utilization of resources and maximize cash flow efficiency.