Flowserve Corporation (FLS)
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 | 97.84 | 106.25 | 111.86 | 99.37 | 93.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 97.84 | 106.25 | 111.86 | 99.37 | 93.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.84 + — – —
= 97.84
The cash conversion cycle of Flowserve Corporation has shown fluctuating trends over the past five years. Starting at 93.26 days as of December 31, 2020, the cycle increased to 99.37 days by December 31, 2021, indicating a longer period for the company to convert its investments in inventory back into cash.
By the end of 2022, the cash conversion cycle further extended to 111.86 days, suggesting potential challenges in efficiently managing its working capital and liquidity. However, there was a slight improvement by December 31, 2023, with the cycle reducing to 106.25 days, although still relatively high.
As of December 31, 2024, the cash conversion cycle decreased to 97.84 days, indicating some progress in streamlining the company's operations related to inventory management, accounts receivable, and accounts payable. Overall, Flowserve Corporation should continue monitoring its cash conversion cycle closely to optimize its cash flow and operational efficiency.
Peer comparison
Dec 31, 2024