Howmet Aerospace Inc (HWM)
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 | 127.80 | 133.61 | 131.59 | 131.05 | 134.97 | 137.12 | 138.31 | 140.52 | 143.14 | 149.68 | 150.01 | 147.37 | 142.31 | 146.83 | 151.75 | 148.64 | 105.03 | 83.38 | 68.85 | 84.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 127.80 | 133.61 | 131.59 | 131.05 | 134.97 | 137.12 | 138.31 | 140.52 | 143.14 | 149.68 | 150.01 | 147.37 | 142.31 | 146.83 | 151.75 | 148.64 | 105.03 | 83.38 | 68.85 | 84.23 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 127.80 + — – —
= 127.80
The cash conversion cycle of Howmet Aerospace Inc has shown fluctuations over the past few years. The company's cash conversion cycle, representing the time it takes for the company to convert its investment in inventory back into cash, decreased from 84.23 days on March 31, 2020, to a low of 68.85 days on June 30, 2020. However, the cycle then increased to 105.03 days on December 31, 2020, indicating a lengthening of the time it takes to convert inventory to cash.
Despite this increase, the cycle decreased to 131.05 days on March 31, 2024, and further improved to 127.80 days by December 31, 2024. Overall, the company has managed to reduce its cash conversion cycle, which is a positive sign as it signifies the management's efficiency in managing working capital.
Investors and stakeholders should continue to monitor the trend of the cash conversion cycle as it can provide insights into the company's operational efficiency and liquidity management.
Peer comparison
Dec 31, 2024