Ingredion Incorporated (INGR)
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 | 81.66 | 89.51 | 71.26 | 68.70 | 62.80 |
| Days of sales outstanding (DSO) | days | 57.21 | 64.81 | 59.83 | 61.85 | 57.52 |
| Number of days of payables | days | 43.82 | 48.93 | 47.06 | 44.88 | 36.76 |
| Cash conversion cycle | days | 95.06 | 105.39 | 84.03 | 85.68 | 83.56 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.66 + 57.21 – 43.82
= 95.06
The cash conversion cycle of Ingredion Inc has fluctuated over the past five years. In 2023, it stood at 95.47 days, a decrease from the previous year's figure of 105.77 days. This indicates that the company took fewer days to convert its investments in inventory and other resources into cash receipts from sales.
Comparing 2023 to 2019, the cash conversion cycle has slightly increased over the five-year period. Despite the fluctuations, the company has generally maintained a relatively efficient cash conversion cycle, enabling it to efficiently manage its working capital.
It is important for Ingredion Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources, minimize liquidity risks, and improve overall financial performance in the long run.
Peer comparison
Dec 31, 2023