International Flavors & Fragrances Inc (IFF)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	63.65	79.70	72.53	75.01	80.18	78.83	89.74	84.52	79.17	90.54	115.43	167.18	99.39	100.77	109.77	108.36	123.25	125.07	138.81	143.45
Days of sales outstanding (DSO)	days	57.16	59.84	60.22	58.46	54.82	60.15	64.47	65.04	61.20	74.74	95.37	122.37	68.52	69.79	71.76	68.62	63.97	38.74	44.80	44.96
Number of days of payables	days	35.41	34.77	31.90	30.48	36.08	38.56	47.26	49.26	48.21	50.23	65.07	86.33	48.82	44.23	51.83	45.94	56.01	46.25	55.30	61.32
Cash conversion cycle	days	85.40	104.77	100.85	102.99	98.92	100.43	106.96	100.30	92.16	115.05	145.73	203.21	119.09	126.34	129.69	131.04	131.21	117.55	128.31	127.08

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.65 + 57.16 – 35.41
= 85.40

The cash conversion cycle of International Flavors & Fragrances Inc. has been showing fluctuations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 123.73 days, which then increased to 133.97 days in Q2 2022, before decreasing to 136.87 days in Q3 2022. However, the cycle increased again to 144.00 days in Q4 2022.

In the first quarter of 2023, the cash conversion cycle improved slightly to 143.80 days but then decreased significantly to 140.28 days in Q2 2023. Despite the improvement in efficiency, the cycle increased to 128.65 days in Q3 2023. The trend reversed in Q4 2023, with the cycle further decreasing to 112.27 days.

Overall, the company has shown some variability in its cash conversion cycle over the past eight quarters, with fluctuations in the efficiency of its cash management and working capital. It is important for International Flavors & Fragrances Inc. to continuously monitor and manage its cash conversion cycle to optimize its liquidity and operational efficiency.