Acushnet Holdings Corp (GOLF)
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 | 165.62 | 198.91 | 225.70 | 146.54 | 166.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 165.62 | 198.91 | 225.70 | 146.54 | 166.88 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 165.62 + — – —
= 165.62
The cash conversion cycle of Acushnet Holdings Corp has exhibited fluctuations over the past five years. In 2020, the company's cash conversion cycle stood at 166.88 days, indicating that it took Acushnet approximately 167 days to convert its investments in inventory and accounts receivable into cash.
In 2021, there was an improvement in efficiency as the cash conversion cycle decreased to 146.54 days, signaling that the company was able to manage its working capital more effectively and convert its assets into cash at a quicker pace.
However, in 2022, there was a significant increase in the cash conversion cycle to 225.70 days, suggesting potential challenges in managing inventory levels and collecting receivables efficiently, which could impact the company's liquidity position.
The trend continued in 2023 with a cash conversion cycle of 198.91 days, indicating that Acushnet still faced challenges in optimizing its working capital components and converting them into cash promptly.
In 2024, there was a notable improvement as the cash conversion cycle decreased to 165.62 days, which might suggest that the company implemented strategies to enhance operational efficiency and liquidity management.
Overall, the fluctuating cash conversion cycle trends of Acushnet Holdings Corp over the five-year period indicate the company's varying performance in managing its working capital and converting it into cash, highlighting the importance of continuous monitoring and improvement in liquidity management practices.
Peer comparison
Dec 31, 2024