Corning Incorporated (GLW)
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 | 112.40 | 109.47 | 100.41 | 116.52 | 113.39 |
| Days of sales outstanding (DSO) | days | 45.58 | 44.27 | 51.94 | 68.88 | 58.26 |
| Number of days of payables | days | 61.81 | 68.00 | 65.24 | 55.14 | 77.56 |
| Cash conversion cycle | days | 96.18 | 85.74 | 87.11 | 130.26 | 94.08 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.40 + 45.58 – 61.81
= 96.18
Corning, Inc.'s cash conversion cycle has experienced fluctuation over the past five years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
In 2023, the cash conversion cycle stood at 96.18 days, showing an increase compared to the previous year's figure of 85.74 days. This suggests that Corning, Inc. took longer to convert its resources into cash during 2023, which could indicate inefficiencies in managing its working capital.
Compared to 2021, the cash conversion cycle improved slightly in 2022 at 85.74 days, but it was still higher than the levels seen in 2019 and 2020. The significant decrease in the cash conversion cycle in 2020 to 128.24 days stands out as a period when Corning, Inc. faced challenges in efficiently managing its working capital, leading to a prolonged cash conversion cycle.
Overall, Corning, Inc. should focus on optimizing its inventory management, accounts receivable collection, and accounts payable payment processes to shorten its cash conversion cycle and improve its cash flow efficiency in the future.
Peer comparison
Dec 31, 2023