Entegris Inc (ENTG)

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	132.74	133.39	125.31	118.64	109.35	115.08	122.76	146.77	157.34	178.50	154.70	153.05	139.97	132.05	125.70	123.49	117.12	126.39	131.92	122.96
Days of sales outstanding (DSO)	days	55.78	57.33	50.80	45.94	47.34	46.21	42.28	—	59.55	—	—	—	55.16	—	—	—	—	—	—	—
Number of days of payables	days	40.21	36.13	28.01	24.87	24.18	24.27	21.91	29.53	33.39	40.68	38.81	37.58	38.51	37.12	30.15	32.02	29.51	26.80	31.85	33.35
Cash conversion cycle	days	148.32	154.59	148.10	139.72	132.51	137.02	143.13	117.24	183.50	137.82	115.89	115.47	156.62	94.93	95.55	91.46	87.61	99.59	100.07	89.61

December 31, 2024 calculation

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

Entegris Inc's cash conversion cycle has shown some fluctuations over the past few years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2024, we can observe the following trends in Entegris Inc's cash conversion cycle:

- The cycle started at 89.61 days in March 2020, increased to 156.62 days by December 2021, and then decreased to 132.51 days by December 2023.
- There was a significant spike to 183.50 days by December 2022, indicating potential issues with managing inventory, accounts receivable, and accounts payable efficiently.
- The cycle showed improvement in the following years, with a decrease to 148.32 days by December 2024, suggesting potential enhancements in inventory management and collection processes.

Overall, Entegris Inc's cash conversion cycle has experienced fluctuations, with some periods showing extended cycles that may require attention to optimize working capital management. It is essential for the company to focus on streamlining operations to reduce the time it takes to convert investments into cash flows, which can improve liquidity and overall financial performance.