Alphabet Inc Class A (GOOGL)
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 | — | — | 7.72 | 3.85 | 3.14 |
| Days of sales outstanding (DSO) | days | 54.75 | 57.29 | 52.24 | 57.05 | 62.76 |
| Number of days of payables | days | 19.93 | 20.51 | 14.83 | 19.86 | 24.08 |
| Cash conversion cycle | days | 34.82 | 36.78 | 45.13 | 41.04 | 41.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 54.75 – 19.93
= 34.82
The cash conversion cycle of Alphabet Inc Class A has shown some fluctuations over the years based on the provided data. As of December 31, 2020, the cash conversion cycle stood at 41.82 days, indicating that the company took approximately 41.82 days to convert its investments in inventory and other resources into cash.
By December 31, 2021, the cash conversion cycle decreased slightly to 41.04 days, suggesting an improvement in the efficiency of Alphabet Inc in managing its working capital.
However, by December 31, 2022, the cash conversion cycle increased to 45.13 days, indicating a longer period for the company to convert its resources into cash compared to the previous year.
The trend reversed positively by December 31, 2023, where the cash conversion cycle decreased notably to 36.78 days, reflecting a quicker conversion of inventory and resources into cash.
The most recent data available as of December 31, 2024, shows a further improvement in the cash conversion cycle, with a figure of 34.82 days. This indicates Alphabet Inc has managed to streamline its operations efficiently, reducing the time taken to convert investments into cash.
Overall, the fluctuations in the cash conversion cycle of Alphabet Inc Class A demonstrate the company's ability to efficiently manage its working capital and generate cash flow from its operations over the years.
Peer comparison
Dec 31, 2024