Dupont De Nemours Inc (DD)

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	72.50	82.34	83.58	86.10	80.06	74.12	68.97	62.57	56.66	74.42	62.91	55.49	48.02	81.25	91.37	92.76	53.21	57.96	67.76	323.97
Days of sales outstanding (DSO)	days	71.60	71.03	67.17	68.95	69.78	57.65	54.38	52.79	46.93	59.82	55.50	49.74	43.32	64.99	63.81	66.24	64.51	66.44	69.84	305.31
Number of days of payables	days	56.56	60.88	63.12	67.71	72.29	64.76	62.50	60.83	57.09	66.41	55.93	49.28	44.59	55.91	55.84	59.86	36.15	39.63	46.61	235.46
Cash conversion cycle	days	87.54	92.50	87.63	87.35	77.55	67.02	60.85	54.52	46.50	67.83	62.48	55.96	46.75	90.33	99.34	99.14	81.57	84.78	90.99	393.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.50 + 71.60 – 56.56
= 87.54

DuPont de Nemours Inc's cash conversion cycle has shown fluctuations over the past eight quarters. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flow from sales.

In Q4 2023, the cash conversion cycle was 93.67 days, indicating that on average, the company takes approximately 93.67 days to convert its investments in inventory into cash received from sales. This was a slight improvement compared to the previous quarter and Q2 2023, but still higher than Q1 2023.

Looking at the trend over the past two years, there has been an overall increase in the cash conversion cycle from Q1 2022 to Q4 2023. This indicates that DuPont de Nemours Inc may be taking longer to convert its investments into cash flow. However, it's worth noting that the company had a significantly lower cash conversion cycle in Q2 2022 and Q3 2022, where it took around 60-70 days on average to convert investments into cash.

Overall, DuPont de Nemours Inc should continue monitoring and managing its cash conversion cycle to ensure efficiency in converting investments into cash flow from sales. Efforts to reduce the cycle time can help improve liquidity and overall financial performance.