Dupont De Nemours Inc (DD)

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	98.67	97.42	96.47	98.36	98.12	103.78	104.77	107.76	101.18	101.62	93.92	84.54	103.80	90.53	79.83	71.73	100.58	106.21	116.04	117.04
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	98.67	97.42	96.47	98.36	98.12	103.78	104.77	107.76	101.18	101.62	93.92	84.54	103.80	90.53	79.83	71.73	100.58	106.21	116.04	117.04

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.67 + — – —
= 98.67

Based on the data provided, Dupont De Nemours Inc's cash conversion cycle has fluctuated over the quarters between March 31, 2020, and December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

We observe that the cash conversion cycle for Dupont De Nemours Inc initially decreased from 117.04 days on March 31, 2020, to 71.73 days on March 31, 2021, indicating an improvement in efficiency in managing its working capital. Subsequently, there was a fluctuation in the cash conversion cycle, reaching a peak of 107.76 days on March 31, 2023.

Overall, the trend in the cash conversion cycle after March 31, 2021, showed some degree of volatility, with periods of decrease and increase. The company's management may need to focus on maintaining a more stable cash conversion cycle to ensure efficient working capital management and optimize cash flows. Additionally, the downward trend observed towards the end of the data period suggests some improvement in efficiency in recent quarters.

It would be essential for stakeholders to monitor Dupont De Nemours Inc's cash conversion cycle closely to assess its operational efficiency and working capital management practices, as fluctuations in this ratio can impact the company's liquidity and financial health.