Ecolab Inc (ECL)
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 | 60.11 | 64.43 | 61.22 | 63.01 | 59.73 | 61.44 | 66.13 | 70.34 | 74.10 | 76.34 | 75.27 | 72.75 | 71.50 | 68.41 | 72.86 | 71.28 | 64.24 | 60.73 | 54.84 | 63.81 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 60.11 | 64.43 | 61.22 | 63.01 | 59.73 | 61.44 | 66.13 | 70.34 | 74.10 | 76.34 | 75.27 | 72.75 | 71.50 | 68.41 | 72.86 | 71.28 | 64.24 | 60.73 | 54.84 | 63.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.11 + — – —
= 60.11
The cash conversion cycle of Ecolab Inc has shown some fluctuations over the reported periods, ranging from around 54 to 76 days. 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.
Analyzing the trend, we can observe that the cash conversion cycle initially decreased from around 63 to 54 days between March 2020 and June 2020, indicating an improvement in the company's efficiency in managing its working capital. However, from June 2020 to March 2023, the cash conversion cycle gradually increased to a peak of around 76 days by September 2022. This increase may suggest potential issues in inventory management or collection of receivables during this period.
In the latter part of the reported periods, from March 2023 to December 2024, the cash conversion cycle decreased consistently to approximately 60 days by December 2024. This decline could indicate potential enhancements in inventory turnover rates or more effective management of accounts receivable.
Overall, the varying trend in Ecolab Inc's cash conversion cycle reflects changes in the company's working capital management efficiency over time. Investors and stakeholders may need to further investigate the underlying factors driving these fluctuations to assess the company's financial health and operational performance accurately.
Peer comparison
Dec 31, 2024