Ichor Holdings Ltd (ICHR)
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 | 121.73 | 120.21 | 117.98 | 126.29 | 126.81 | 125.31 | 108.34 | 97.97 | 96.93 | 100.50 | 107.83 | 102.06 | 93.74 | 79.55 | 70.09 | 63.88 | 62.31 | 67.66 | 79.99 | 86.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 121.73 | 120.21 | 117.98 | 126.29 | 126.81 | 125.31 | 108.34 | 97.97 | 96.93 | 100.50 | 107.83 | 102.06 | 93.74 | 79.55 | 70.09 | 63.88 | 62.31 | 67.66 | 79.99 | 86.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.73 + — – —
= 121.73
The cash conversion cycle of Ichor Holdings Ltd has shown fluctuations over the past few years. In the period between March 2020 and December 2021, the company's cash conversion cycle decreased steadily from 86.26 days to 62.31 days, indicating an improvement in its efficiency in converting investments in inventory to cash receipts from customers.
However, from March 2022 onwards, there was a reversal in this trend as the cash conversion cycle started to increase. By June 2024, the cash conversion cycle reached 117.98 days, suggesting that the company took longer to convert its investments in inventory back to cash compared to the earlier period.
Overall, while the company initially managed to reduce its cash conversion cycle, the subsequent increase may indicate potential challenges in managing inventory levels, accounts receivable, and accounts payable efficiently. It would be crucial for Ichor Holdings Ltd to closely monitor and address these factors to optimize its cash conversion cycle and improve its overall cash flow efficiency in the future.
Peer comparison
Dec 31, 2024