General Dynamics Corporation (GD)
Cash conversion cycle
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | 951.66 | 700.31 | 621.72 | 683.04 | 64.78 |
Days of sales outstanding (DSO) | days | 94.99 | 109.32 | 109.48 | 107.65 | 105.75 |
Number of days of payables | days | 343.37 | 376.41 | 368.73 | 350.97 | 32.48 |
Cash conversion cycle | days | 703.29 | 433.23 | 362.48 | 439.71 | 138.05 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 951.66 + 94.99 – 343.37
= 703.29
The cash conversion cycle of General Dynamics Corp. has shown some fluctuation over the past five years.
In 2023, the cash conversion cycle increased to 151.20 days from 141.88 days in 2022, indicating a longer time taken to convert company resources into cash. This may be a result of slower collections from customers, longer inventory turnover, or extended payment cycles to suppliers.
In 2021, there was a slight improvement in the cash conversion cycle to 134.22 days, reflecting better efficiency in managing working capital compared to the previous years. However, this improvement was not sustained as the cycle increased to 139.91 days in 2020 and continued to rise in 2019 to 141.29 days.
Overall, the trend in the cash conversion cycle for General Dynamics Corp. has been inconsistent, with periods of improvement followed by increases in the time taken to convert resources into cash. This highlights the importance of effective working capital management to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2023