IDEX Corporation (IEX)
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 | 86.01 | 84.07 | 97.94 | 87.77 | 79.91 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 86.01 | 84.07 | 97.94 | 87.77 | 79.91 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.01 + — – —
= 86.01
IDEX Corporation's cash conversion cycle has shown fluctuations over the five-year period. The cycle increased from 79.91 days as of December 31, 2020, to 97.94 days as of December 31, 2022, indicating a prolonged time taken to convert resources into cash during this period.
However, there was a notable improvement by the end of December 31, 2023, where the cycle decreased to 84.07 days and further decreased to 86.01 days by December 31, 2024. This reduction suggests a more efficient management of working capital and quicker conversion of inventory to sales and ultimately to cash over these years.
Overall, while fluctuations were observed in the cash conversion cycle, the recent downward trend indicates a positive development in the efficiency of IDEX Corporation's conversion of its resources from inventory to cash.
Peer comparison
Dec 31, 2024