IDEX Corporation (IEX)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.07 | 97.94 | 87.77 | 79.91 | 78.21 |
| Days of sales outstanding (DSO) | days | 47.69 | 50.79 | 47.05 | 45.49 | 43.63 |
| Number of days of payables | days | 35.90 | 43.45 | 42.37 | 41.90 | 36.90 |
| Cash conversion cycle | days | 95.86 | 105.28 | 92.45 | 83.51 | 84.94 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.07 + 47.69 – 35.90
= 95.86
The cash conversion cycle of Idex Corporation has shown some fluctuations over the past five years. In 2023, the cash conversion cycle was 95.86 days, which decreased from the previous year's 105.28 days. This indicates that the company was able to more efficiently convert its investments in inventory and receivables into cash during the year.
Comparing the 2023 cycle to that of 2021 and 2022, the company's cash conversion cycle increased, suggesting that there may have been challenges in managing inventory levels or collecting receivables during those years.
Looking back to 2020 and 2019, the cash conversion cycle was relatively stable around 83-85 days, indicating consistent efficiency in managing working capital during those years.
Overall, the trend in Idex Corporation's cash conversion cycle shows some variability but also demonstrates the company's ability to manage its working capital effectively over the years. Further analysis of the underlying factors contributing to these changes could provide insights into the company's operational and financial performance.
Peer comparison
Dec 31, 2023