Howmet Aerospace Inc (HWM)
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 | 131.20 | 134.97 | 143.14 | 142.31 | 140.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 131.20 | 134.97 | 143.14 | 142.31 | 140.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 131.20 + — – —
= 131.20
The cash conversion cycle of Howmet Aerospace Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 140.05 days, which increased slightly to 142.31 days by December 31, 2021. Subsequently, there was a further increase to 143.14 days by December 31, 2022. However, there was a notable improvement in efficiency by December 31, 2023, with the cycle decreasing to 134.97 days. The most recent data as of December 31, 2024, indicates a further reduction to 131.20 days.
Overall, the trend suggests that Howmet Aerospace Inc has been working towards managing its cash conversion cycle more effectively in recent years. Despite some fluctuations, the company has made progress in optimizing its working capital management and converting its resources into cash efficiently. The decreasing trend in the cycle duration is a positive sign as it indicates improved liquidity and operational efficiency within the organization.
Peer comparison
Dec 31, 2024