Gates Industrial Corporation plc (GTES)
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 | 120.38 | 106.83 | 103.97 | 116.69 | 105.50 |
| Days of sales outstanding (DSO) | days | 80.46 | 81.65 | 84.37 | 76.40 | 94.56 |
| Number of days of payables | days | 72.69 | 75.55 | 74.41 | 86.60 | 86.65 |
| Cash conversion cycle | days | 128.15 | 112.92 | 113.94 | 106.48 | 113.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 120.38 + 80.46 – 72.69
= 128.15
The cash conversion cycle of Gates Industrial Corporation plc has exhibited fluctuations over the past five years. Starting at 113.41 days in 2020, the cycle decreased to 106.48 days in 2021, indicating a more efficient management of cash flows. However, in 2022, the cycle increased to 113.94 days before slightly dropping to 112.92 days in 2023. The most significant increase was observed in 2024, with the cash conversion cycle extending to 128.15 days. This suggests a potential delay in converting company's investments in inventory and other resources into cash inflows, which might impact liquidity and operational efficiency. Monitoring and managing the cash conversion cycle closely will be crucial for Gates Industrial Corporation to optimize working capital and enhance financial performance in the future.
Peer comparison
Dec 31, 2024