Enovis Corp (ENOV)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.31 | 93.49 | 92.05 | 89.58 | 72.07 | 34.34 | 30.56 | 60.63 | 25.88 | 86.61 | 81.13 | 85.79 | 88.13 | 83.38 | 85.98 | 81.47 | 84.42 | 84.90 | 90.97 | 121.44 |
| Days of sales outstanding (DSO) | days | 63.07 | 61.49 | 67.41 | 63.66 | 43.69 | 42.48 | — | — | 72.17 | — | — | — | 61.45 | — | — | — | — | — | — | — |
| Number of days of payables | days | 26.65 | 24.83 | 29.85 | 30.97 | 22.91 | 14.80 | 12.13 | 38.23 | 11.28 | 52.40 | 55.48 | 57.56 | 51.53 | 47.64 | 46.18 | 53.37 | 53.14 | 54.69 | 61.15 | 115.91 |
| Cash conversion cycle | days | 130.73 | 130.16 | 129.61 | 122.27 | 92.85 | 62.02 | 18.43 | 22.41 | 86.78 | 34.21 | 25.66 | 28.23 | 98.05 | 35.73 | 39.81 | 28.09 | 31.28 | 30.21 | 29.82 | 5.53 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.31 + 63.07 – 26.65
= 130.73
The cash conversion cycle of Enovis Corp has been fluctuating over the last eight quarters, indicating varying efficiency in managing its working capital.
In Q3 2023, the cash conversion cycle significantly increased to 552.01 days, which was more than double the cycle observed in the previous quarter. This sharp increase suggests potential issues with managing cash flow, inventory, and receivables during that period.
The company saw a relatively high cash conversion cycle in Q2 2023 at 522.12 days, indicating a prolonged time taken to convert its investments in inventory and receivables into cash. This may have resulted in increased working capital requirements and reduced liquidity during this period.
Q1 2023 also exhibited a lengthy cash conversion cycle of 494.22 days, indicating a similar trend of slow conversion of resources into cash. This could have impacted the company's ability to meet its short-term obligations and fund its operations efficiently.
In contrast, Q2 2022 had the lowest cash conversion cycle at 72.86 days, reflecting a more effective management of working capital and quicker conversion of assets into cash. This efficiency may have contributed to improved liquidity and cash flow position during that quarter.
Overall, Enovis Corp should focus on strategies to optimize its cash conversion cycle consistently across quarters to enhance its financial performance and operational efficiency.
Peer comparison
Dec 31, 2023