GE Aerospace (GE)
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 | 274.54 | 269.57 | 256.36 | 242.25 | 203.12 | 249.74 | 165.48 | 115.59 | 91.43 | 94.73 | 92.27 | 85.30 | 78.27 | 66.58 | 65.77 | 61.56 | 64.44 | 69.99 | 86.52 | 115.17 |
| Days of sales outstanding (DSO) | days | 83.07 | 81.23 | 86.26 | 86.58 | 93.17 | 101.94 | 90.50 | 83.93 | 76.84 | 73.78 | 75.50 | 77.88 | 80.34 | 83.05 | 72.47 | 114.54 | 109.42 | 102.17 | 115.38 | 120.48 |
| Number of days of payables | days | 177.37 | 169.36 | 160.91 | 150.29 | 170.22 | — | — | — | 63.30 | — | — | — | — | 62.19 | 58.08 | 60.58 | 59.61 | 66.72 | 73.80 | 101.18 |
| Cash conversion cycle | days | 180.24 | 181.44 | 181.71 | 178.55 | 126.07 | 351.68 | 255.98 | 199.52 | 104.98 | 168.51 | 167.76 | 163.18 | 158.61 | 87.44 | 80.15 | 115.52 | 114.25 | 105.44 | 128.10 | 134.48 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 274.54 + 83.07 – 177.37
= 180.24
The cash conversion cycle of General Electric Co. has been showing a decreasing trend over the past few quarters, indicating an improvement in the company's efficiency in managing its cash flows.
In Q4 2023, the cash conversion cycle was 125.45 days, which decreased from 120.37 days in Q3 2023, and further declined from 117.91 days in Q2 2023. This suggests that the company has been able to convert its investments into cash at a faster rate compared to the previous quarters.
Moreover, the current cash conversion cycle of 125.45 days in Q4 2023 is significantly lower than the cycle of 200.09 days in Q4 2022, indicating a substantial improvement in managing the company's working capital and cash flow efficiency.
Overall, the decreasing trend in the cash conversion cycle of General Electric Co. reflects positively on the company's ability to efficiently manage its operations, inventory, and accounts receivable, ultimately leading to better cash flow management.
Peer comparison
Dec 31, 2023