Huntington Ingalls Industries Inc (HII)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.92 | — | — | — | 62.51 | — | — | — | 67.20 | — | — | 43.07 | 59.72 | 46.63 | 49.21 | 46.68 | 52.09 | 48.59 | 47.76 | 47.08 |
| Days of sales outstanding (DSO) | days | 13.16 | 18.99 | 27.99 | 27.03 | 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 |
| Number of days of payables | days | 212.53 | 190.56 | 214.40 | 203.04 | 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 |
| Cash conversion cycle | days | -125.44 | -171.58 | -186.41 | -176.01 | -103.16 | -163.68 | -156.01 | -156.03 | -140.99 | -161.11 | -158.85 | -120.88 | -139.35 | -122.18 | -63.77 | -84.19 | -100.66 | -89.03 | -97.46 | -147.48 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 73.92 + 13.16 – 212.53
= -125.44
The cash conversion cycle of Huntington Ingalls Industries Inc has been fluctuating over the past few years. The company started with a negative cash conversion cycle of around -147 days as of March 31, 2020, indicating that it could convert its inventory into cash relatively quickly.
As the data progresses, we see variations in the cash conversion cycle, with some improvements and deteriorations. For instance, the company saw a significant improvement in its cash conversion cycle by June 30, 2022, reaching -158.85 days, suggesting more efficient management of its operating cycle.
However, by December 31, 2024, the cash conversion cycle decreased to -125.44 days, indicating a slight deterioration in the company's ability to efficiently convert its resources into cash. Overall, Huntington Ingalls Industries Inc has shown fluctuating trends in its cash conversion cycle, reflecting the company's effectiveness in managing its working capital and operational efficiency.
Peer comparison
Dec 31, 2024