Elevance Health Inc (ELV)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days
Days of sales outstanding (DSO) days 0.33
Number of days of payables days
Cash conversion cycle days 0.00 0.00 0.00 0.00 0.33

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Elevance Health Inc has shown a general increasing trend over the past five years. In 2023, the cash conversion cycle increased to 38.31 days from 37.62 days in 2022. This indicates that the company takes approximately 38.31 days to convert its investments in inventory and other resources into cash flows from sales.

Although the cycle has been fluctuating slightly, the overall trend suggests a lengthening of the time taken to convert various components of working capital into cash. A longer cash conversion cycle may indicate inefficiencies in managing inventory, accounts receivable, and accounts payable, leading to potential liquidity challenges for the company.

It is essential for Elevance Health Inc to closely monitor and improve its cash conversion cycle to ensure optimal working capital management and maintain healthy liquidity levels. An extended cash conversion cycle can strain the company's cash flow and hinder its ability to meet short-term obligations and invest in growth opportunities.


Peer comparison

Dec 31, 2023


See also:

Elevance Health Inc Cash Conversion Cycle