Corning Incorporated (GLW)
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 | 112.40 | 106.90 | 107.95 | 110.45 | 109.47 | 112.23 | 109.33 | 102.95 | 100.41 | 102.73 | 103.02 | 106.71 | 116.52 | 123.99 | 108.55 | 112.94 | 113.39 | 116.24 | 116.19 | 114.24 |
| Days of sales outstanding (DSO) | days | 45.58 | 48.43 | 45.89 | 45.01 | 44.27 | 40.89 | 44.69 | 48.17 | 51.94 | 56.09 | 57.13 | 56.83 | 68.88 | 71.14 | 58.38 | 56.26 | 58.26 | 63.03 | 65.08 | 62.10 |
| Number of days of payables | days | 61.81 | 58.75 | 59.48 | 64.12 | 68.00 | 68.76 | 74.58 | 72.71 | 65.24 | 58.23 | 56.63 | 57.49 | 55.14 | 56.49 | 53.86 | 60.15 | 77.56 | 71.98 | 65.78 | 66.67 |
| Cash conversion cycle | days | 96.18 | 96.59 | 94.36 | 91.35 | 85.74 | 84.37 | 79.44 | 78.41 | 87.11 | 100.60 | 103.53 | 106.05 | 130.26 | 138.63 | 113.07 | 109.04 | 94.08 | 107.30 | 115.49 | 109.68 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.40 + 45.58 – 61.81
= 96.18
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. Corning, Inc.'s cash conversion cycle has shown a fluctuating trend over the past eight quarters. The cycle ranged from 78.41 days in Q1 2022 to 96.59 days in Q3 2023.
Corning's cash conversion cycle in Q4 2023 was 96.18 days, a slight decrease from the previous quarter. This indicates that the company took 96.18 days on average to convert its investments in inventory and other resources into cash from sales.
Overall, Corning's cash conversion cycle has been relatively stable, staying within a range of 78.41 to 96.59 days over the past two years. It is important for the company to monitor and manage its cash conversion cycle effectively to maintain optimal cash flow and working capital management.
Peer comparison
Dec 31, 2023