Dover Corporation (DOV)
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 | 82.28 | 84.99 | 84.45 | 85.08 | 83.55 | 86.40 | 93.83 | 93.82 | 91.62 | 96.24 | 96.65 | 94.65 | 88.05 | 80.31 | 77.18 | 76.23 | 72.47 | 72.79 | 75.78 | 69.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 82.28 | 84.99 | 84.45 | 85.08 | 83.55 | 86.40 | 93.83 | 93.82 | 91.62 | 96.24 | 96.65 | 94.65 | 88.05 | 80.31 | 77.18 | 76.23 | 72.47 | 72.79 | 75.78 | 69.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 82.28 + — – —
= 82.28
The cash conversion cycle is a critical financial metric that reflects the efficiency with which a company manages its working capital. Dover Corporation's cash conversion cycle has exhibited fluctuations over the past few years.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 69.76 days to a high of 96.65 days. The company's cash conversion cycle has generally been on an upward trend, with occasional fluctuations. This suggests that Dover Corporation may be taking longer to convert its investments in inventory and accounts receivable into cash.
A longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers. It can tie up cash resources and impact the company's liquidity and overall financial health.
Analyzing the trend over time can help identify potential issues in the company's working capital management practices. Dover Corporation may need to review its inventory control, accounts receivable collection policies, and payables management to improve its cash conversion cycle and optimize its working capital efficiency.
Peer comparison
Dec 31, 2024