Corning Incorporated (GLW)
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 | 112.45 | 112.40 | 109.47 | 100.41 | 116.52 |
| Days of sales outstanding (DSO) | days | 57.12 | 45.58 | 44.27 | 51.94 | 68.88 |
| Number of days of payables | days | 60.76 | 61.81 | 68.00 | 65.24 | 55.14 |
| Cash conversion cycle | days | 108.81 | 96.18 | 85.74 | 87.11 | 130.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.45 + 57.12 – 60.76
= 108.81
Over the five-year period from December 31, 2020, to December 31, 2024, Corning Incorporated has shown a fluctuating trend in its cash conversion cycle. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Corning's cash conversion cycle decreased steadily from 130.26 days in 2020 to 85.74 days in 2022, indicating an improvement in the company's efficiency in managing its working capital. However, in 2023 and 2024, the cash conversion cycle increased to 96.18 days and 108.81 days, respectively, suggesting a potential slowdown in the conversion of inventory and other resources into cash.
Overall, while Corning has shown an initial improvement in its cash conversion cycle, the recent increase in this metric may indicate a need for the company to focus on optimizing its working capital management to enhance efficiency and liquidity in the coming years.
Peer comparison
Dec 31, 2024