Chart Industries Inc (GTLS)
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 | 64.60 | 90.98 | 108.41 | 118.12 | 107.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 64.60 | 90.98 | 108.41 | 118.12 | 107.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.60 + — – —
= 64.60
The cash conversion cycle of Chart Industries Inc has exhibited fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle stood at 107.30 days, indicating the average number of days it takes for Chart Industries to convert its investments in raw materials into cash receipts from sales. By December 31, 2021, this cycle lengthened to 118.12 days, suggesting a potential delay in the company's cash conversion process.
In the subsequent year, by December 31, 2022, the cash conversion cycle improved to 108.41 days, showing a reduction in the time needed for the company to generate cash from its operations. This improvement continued into December 31, 2023, where the cycle decreased significantly to 90.98 days, indicating a more efficient cash conversion process compared to the previous years.
By the end of December 31, 2024, the cash conversion cycle experienced a substantial decrease to 64.60 days, reaching its lowest point in the provided data series. This decrease points to Chart Industries Inc accelerating its cash inflows relative to its outflows, showcasing enhanced efficiency in managing its working capital.
Overall, the trend in Chart Industries' cash conversion cycle demonstrates some fluctuations, with periods of lengthening and shortening cycles. Analyzing these fluctuations can provide insights into the company's efficiency in managing its liquidity and working capital.