Entegris Inc (ENTG)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	132.74	109.35	157.34	139.97	117.12
Days of sales outstanding (DSO)	days	55.78	47.34	59.55	55.16	51.90
Number of days of payables	days	40.21	24.18	33.39	38.51	29.51
Cash conversion cycle	days	148.32	132.51	183.50	156.62	139.51

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 132.74 + 55.78 – 40.21
= 148.32

The cash conversion cycle for Entegris Inc has shown fluctuations over the past five years. From 2020 to 2021, the cycle increased from 139.51 days to 156.62 days, indicating a lengthening time taken to convert inputs into cash. This trend continued in 2022 with a further increase to 183.50 days, reflecting potential challenges in managing working capital efficiently.

However, there was a notable improvement in 2023 as the cash conversion cycle decreased to 132.51 days, suggesting a more effective cash management strategy or possibly improved operational efficiency. In 2024, the cycle increased slightly to 148.32 days, indicating a longer period required to convert resources into cash compared to the previous year.

Overall, Entegris Inc's cash conversion cycle has shown variability, with periods of both improvement and deterioration. This metric is crucial for assessing the company's ability to efficiently manage its working capital and convert resources into cash, highlighting the importance of monitoring trends in the cycle over time.