Danaher Corporation (DHR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.96 | 77.51 | 90.65 | 87.81 | 85.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 87.96 | 77.51 | 90.65 | 87.81 | 85.29 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.96 + — – —
= 87.96
The cash conversion cycle for Danaher Corporation has shown variability over the past five years. From December 31, 2020, to December 31, 2024, the cycle ranged from 77.51 days to 90.65 days. This indicates that, on average, it takes the company between 77.51 to 90.65 days to convert its investments in inventory and accounts receivable into cash received from sales.
During this period, Danaher Corporation experienced fluctuations in how efficiently it managed its cash flows. A shorter cash conversion cycle suggests faster conversion of investments into cash, reflecting effective inventory management and quicker collection of accounts receivable. Conversely, a longer cycle may indicate slower turnover of assets and potential inefficiencies in the company's working capital management.
Overall, monitoring changes in the cash conversion cycle can provide insights into Danaher Corporation's operational efficiency and cash flow management, highlighting areas that may require attention to optimize working capital utilization and enhance financial performance.
Peer comparison
Dec 31, 2024