FormFactor Inc (FORM)
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 | 81.44 | 100.77 | 99.47 | 91.10 | 89.28 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 81.44 | 100.77 | 99.47 | 91.10 | 89.28 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.44 + — – —
= 81.44
The cash conversion cycle of FormFactor Inc has shown some fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 89.28 days, indicating that it took around 89 days for the company to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle increased slightly to 91.10 days, suggesting a longer period of time to convert investments into cash. The trend continued in the following years, reaching 99.47 days by December 31, 2022, and further increasing to 100.77 days by December 31, 2023.
However, there was a notable improvement in the cash conversion cycle by December 31, 2024, with a significant decrease to 81.44 days. This indicates that FormFactor Inc was able to streamline its operations and improve its efficiency in converting investments into cash within a shorter timeframe.
Overall, the fluctuations in FormFactor Inc's cash conversion cycle highlight the company's ability to manage its working capital effectively over the years, with the most recent data showing a positive trend towards a more efficient cash conversion cycle.
Peer comparison
Dec 31, 2024