International Seaways Inc (INSW)
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 | 2.11 | 1.09 | 0.49 | 2.48 | 5.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 2.11 | 1.09 | 0.49 | 2.48 | 5.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.11 + — – —
= 2.11
International Seaways Inc's cash conversion cycle has shown a decreasing trend over the years, indicating efficiency in managing its working capital. As of December 31, 2020, the company had a cash conversion cycle of 5.21 days, which decreased to 2.48 days by December 31, 2021. This sharp decline continued as the cycle further decreased to 0.49 days by December 31, 2022, before slightly increasing to 1.09 days by December 31, 2023, and then rising to 2.11 days by December 31, 2024.
A shorter cash conversion cycle signifies that the company is able to convert its investments in inventory into cash more quickly, indicating efficient inventory management and faster collection of receivables. However, the slight increase in the cash conversion cycle from 2023 to 2024 may suggest that the company could be facing challenges in either managing its inventory or collecting receivables efficiently. Overall, the decreasing trend in the cash conversion cycle signals positive working capital management, but the recent uptick should be monitored for potential impacts on the company's liquidity.
Peer comparison
Dec 31, 2024