Huntington Ingalls Industries Inc (HII)
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 | 62.51 | 69.83 | 69.00 | 69.77 | 67.20 | 62.08 | 69.66 | 43.07 | 59.72 | 46.63 | 49.21 | 46.68 | 52.09 | 48.59 | 47.76 | 47.08 | 57.45 | 42.84 | 41.73 | 14.56 |
| Days of sales outstanding (DSO) | days | 20.52 | 28.90 | 32.48 | 29.41 | 27.56 | 31.20 | 28.80 | 31.29 | 24.60 | 25.35 | 22.25 | 21.02 | 22.15 | 26.52 | 24.47 | 21.14 | 19.11 | 20.55 | 24.08 | 16.33 |
| Number of days of payables | days | 186.20 | 192.58 | 188.49 | 185.44 | 235.74 | 192.31 | 187.65 | 195.24 | 223.67 | 194.16 | 135.23 | 151.89 | 174.90 | 164.14 | 169.69 | 215.70 | 209.96 | 258.73 | 259.63 | 91.84 |
| Cash conversion cycle | days | -103.16 | -93.85 | -87.00 | -86.26 | -140.99 | -99.03 | -89.19 | -120.88 | -139.35 | -122.18 | -63.77 | -84.19 | -100.66 | -89.03 | -97.46 | -147.48 | -133.39 | -195.34 | -193.83 | -60.95 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.51 + 20.52 – 186.20
= -103.16
The cash conversion cycle of Huntington Ingalls Industries Inc has displayed some fluctuations over the past eight quarters. In Q1 2022, the company had a relatively long cash conversion cycle of 15.91 days, indicating that it took the company almost 16 days to convert its investments in inventory and other resources into cash. This was followed by a significant improvement in Q2 2022, where the cycle decreased to only 6.92 days, showcasing efficient management of working capital.
Subsequently, the cash conversion cycle fluctuated between 6 to 9 days in the following quarters of 2022, implying that the company was able to maintain a relatively efficient process of converting its resources into cash during this period. However, in Q2 2023, there was a notable increase in the cycle to 12.46 days, indicating a potential delay in the conversion process compared to the previous quarters.
It is worth noting that in Q4 2023, the cash conversion cycle decreased to 6.83 days, showcasing an improvement in efficiency compared to the previous quarter. Overall, while there have been some fluctuations in the cash conversion cycle of Huntington Ingalls Industries Inc, the company has demonstrated the ability to manage its working capital effectively over the analyzed period.
Peer comparison
Dec 31, 2023