International Flavors & Fragrances Inc (IFF)
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 | 105.78 | 115.94 | 138.75 | 115.94 | 137.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 105.78 | 115.94 | 138.75 | 115.94 | 137.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 105.78 + — – —
= 105.78
The cash conversion cycle of International Flavors & Fragrances Inc has exhibited some fluctuations over the past five years. The cycle decreased from 137.78 days on December 31, 2020 to 105.78 days on December 31, 2024. This indicates that the company has been able to manage its working capital more efficiently, converting its investments in inventory and receivables into cash at a quicker pace.
A lower cash conversion cycle suggests that the company is able to turn its resources into cash faster, which can be seen as a positive indicator of liquidity and operational efficiency. This trend implies that International Flavors & Fragrances Inc has been able to streamline its operations effectively, potentially reducing idle inventory and speeding up the collection of receivables.
Overall, the decreasing trend in the cash conversion cycle of International Flavors & Fragrances Inc reflects improvements in its working capital management, which can contribute to enhanced financial performance and sustainability in the long run.
Peer comparison
Dec 31, 2024