Ingredion Incorporated (INGR)
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 | 76.83 | 82.55 | 90.34 | 76.90 | 70.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 76.83 | 82.55 | 90.34 | 76.90 | 70.99 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 76.83 + — – —
= 76.83
The cash conversion cycle of Ingredion Incorporated has exhibited fluctuations over the past five years.
As of December 31, 2020, the cash conversion cycle stood at 70.99 days, reflecting the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2021, the cash conversion cycle increased to 76.90 days. This suggests a slight elongation in the company's operating cycle, which may indicate a slower turnover of inventory or a lengthier collection period from customers.
By the end of December 31, 2022, the cash conversion cycle further extended to 90.34 days, indicating potential challenges in efficiently managing working capital, converting inventory to sales, and collecting receivables.
However, there was a slight improvement in the cash conversion cycle by December 31, 2023, where it decreased to 82.55 days, suggesting some optimization in the company's operational efficiency and working capital management.
As of December 31, 2024, the cash conversion cycle decreased further to 76.83 days, indicating a potential enhancement in the company's ability to convert resources into cash. It's essential for Ingredion Incorporated to continuously monitor and manage its cash conversion cycle to ensure optimal working capital efficiency and financial performance.
Peer comparison
Dec 31, 2024