FMC Corporation (FMC)
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 | 169.19 | 195.20 | 207.46 | 235.57 | 237.02 | 253.14 | 237.80 | 201.56 | 173.45 | 189.33 | 186.09 | 195.60 | 178.56 | 194.26 | 191.67 | 177.18 | 154.39 | 163.43 | 163.33 | 151.09 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 169.19 | 195.20 | 207.46 | 235.57 | 237.02 | 253.14 | 237.80 | 201.56 | 173.45 | 189.33 | 186.09 | 195.60 | 178.56 | 194.26 | 191.67 | 177.18 | 154.39 | 163.43 | 163.33 | 151.09 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 169.19 + — – —
= 169.19
The cash conversion cycle of FMC Corporation has fluctuated over the periods under evaluation. It started at around 151 days in March 2020, increased to 195 days in March 2022, and then decreased to 169 days by December 2024. The company's cash conversion cycle reached its peak in December 2023 at 253 days, indicating a longer time to convert its investments in inventory and accounts receivable into cash.
A longer cash conversion cycle may suggest inefficiencies in managing working capital, potentially tying up capital that could be put to more productive use. Conversely, a shorter cycle signifies that the company is able to convert its resources into cash more quickly, which can improve liquidity and operational efficiency.
Overall, FMC Corporation should continue to monitor and manage its cash conversion cycle effectively to optimize working capital management and enhance its financial performance.
Peer comparison
Dec 31, 2024