Enovis Corp (ENOV)
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 | 197.61 | 234.79 | 260.80 | 280.07 | 238.86 | 244.59 | 237.97 | 230.45 | 139.38 | 98.49 | 75.50 | 133.85 | 126.46 | 135.13 | 120.47 | 121.40 | 115.65 | 108.59 | 111.75 | 103.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 197.61 | 234.79 | 260.80 | 280.07 | 238.86 | 244.59 | 237.97 | 230.45 | 139.38 | 98.49 | 75.50 | 133.85 | 126.46 | 135.13 | 120.47 | 121.40 | 115.65 | 108.59 | 111.75 | 103.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 197.61 + — – —
= 197.61
The cash conversion cycle of Enovis Corp has shown fluctuations over the period under consideration. Initially ranging from around 100 to 120 days in 2020 and 2021, there was a notable increase in the cycle to over 130 days by the end of 2021 and into 2022. This increasing trend continued into early 2023, peaking at over 280 days which may signal potential inefficiencies in managing cash, inventory, and receivables.
However, there was a sharp drop in the cash conversion cycle in mid-2023 to around 240 days, followed by a further decrease to under 200 days by the end of 2024. This significant improvement could indicate enhanced operational efficiency, better inventory management, and quicker conversion of sales into cash during this period.
Overall, Enovis Corp's cash conversion cycle has been volatile but showed a positive trend towards more efficient working capital management in the later periods, reflected in the reduced number of days required to convert its investments in raw materials, work-in-progress, and finished goods into cash. Monitoring and maintaining this cycle at lower levels can help improve liquidity and overall financial performance.
Peer comparison
Dec 31, 2024