Dover Corporation (DOV)
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 | 87.29 | 83.55 | 91.62 | 88.05 | 72.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 87.29 | 83.55 | 91.62 | 88.05 | 72.47 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.29 + — – —
= 87.29
The cash conversion cycle of Dover Corporation has shown a fluctuating trend over the past five years.
As of December 31, 2020, the cash conversion cycle was 72.47 days, indicating that it took the company approximately 72 days to convert its investments in inventory and accounts receivable into cash flows from sales.
By December 31, 2021, the cash conversion cycle had increased to 88.05 days, suggesting that the company took longer to convert its investments into cash during that period.
In the following years, the trend continued to fluctuate as follows: 91.62 days by December 31, 2022, 83.55 days by December 31, 2023, and 87.29 days by December 31, 2024.
Overall, the increasing trend in the cash conversion cycle from 2020 to 2022 and the subsequent decrease by 2023 followed by a slight increase in 2024 may indicate potential inefficiencies in managing inventory, receivables, and payables during those periods. Further analysis of the underlying factors contributing to these fluctuations would provide valuable insights into the company's working capital management efficiency.
Peer comparison
Dec 31, 2024