General Dynamics Corporation (GD)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 284.43 | 274.99 | 254.38 | 232.98 | 700.31 | 700.77 | 692.02 | 633.41 | 621.72 | 665.36 | 690.61 | 671.01 | 677.96 | 197.54 | 122.34 | 89.94 | 64.82 | 68.78 | 68.97 | 67.91 |
| Days of sales outstanding (DSO) | days | 94.78 | 101.75 | 102.10 | — | 109.32 | — | — | — | 109.48 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 102.62 | 110.07 | 112.01 | 108.01 | 376.41 | 347.86 | 352.64 | 364.20 | 368.73 | 315.78 | 308.83 | 322.77 | 348.36 | 80.63 | 43.73 | 36.60 | 32.50 | 31.38 | 30.44 | 33.03 |
| Cash conversion cycle | days | 276.59 | 266.66 | 244.47 | 124.97 | 433.23 | 352.90 | 339.38 | 269.21 | 362.48 | 349.58 | 381.78 | 348.25 | 329.60 | 116.91 | 78.60 | 53.35 | 32.32 | 37.40 | 38.53 | 34.88 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 284.43 + 94.78 – 102.62
= 276.59
The cash conversion cycle of General Dynamics Corp. has been fluctuating over the past eight quarters, ranging from 130.31 days to 153.99 days. Generally, a shorter cash conversion cycle indicates that the company is able to efficiently convert its investments in inventory and accounts receivable into cash.
In the latest quarter (Q4 2023), the cash conversion cycle increased slightly to 151.20 days compared to the previous quarter. This suggests that the company took slightly longer to convert its inventory and accounts receivable into cash.
Overall, General Dynamics Corp. seems to be managing its cash conversion cycle effectively, as the cycle has remained relatively stable over the past two years. However, the company may want to focus on optimizing its working capital management to potentially shorten the cash conversion cycle further and improve its overall liquidity and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Cash Conversion Cycle (Quarterly Data)