Harmonic Inc (HLIT)
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 | 74.68 | 103.78 | 142.83 | 105.03 | 69.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 74.68 | 103.78 | 142.83 | 105.03 | 69.55 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.68 + — – —
= 74.68
The cash conversion cycle for Harmonic Inc has shown fluctuations over the past five years. In December 31, 2020, the company's cash conversion cycle was 69.55 days, indicating it took approximately 69.55 days to convert its investments in inventory and other resources into cash inflows from sales.
By December 31, 2021, the cash conversion cycle increased to 105.03 days, suggesting a significant increase in the time taken to convert investments into cash. This could potentially indicate inefficiencies in inventory management or slower collection of receivables during that period.
In December 31, 2022, the cash conversion cycle further extended to 142.83 days, reaching its highest point over the five-year period. This prolonged cycle may signal challenges in managing working capital effectively, potentially impacting the company's liquidity and operational efficiency.
However, by December 31, 2023, there was a notable improvement in the cash conversion cycle, decreasing to 103.78 days. This decrease could suggest that the company made efforts to streamline its operations, enhance inventory turnover, or improve collection processes to shorten the cycle.
In the most recent period as of December 31, 2024, the cash conversion cycle decreased further to 74.68 days, indicating a significant improvement in the company's ability to convert its resources into cash efficiently. This decrease may reflect enhanced working capital management practices or other operational improvements that contributed to a more streamlined cash conversion process.
Overall, fluctuations in the cash conversion cycle for Harmonic Inc highlight the importance of monitoring operational efficiency and working capital management strategies to ensure optimal use of resources and sustain healthy cash flows over time.
Peer comparison
Dec 31, 2024