IPG Photonics Corporation (IPGP)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 166.32 | 176.00 | 223.51 | 225.39 | 222.31 | 210.07 | 207.60 | 210.84 | 212.69 | 253.50 | 255.75 | 226.64 | 219.99 | 210.12 | 202.79 | 192.80 | 201.33 | 206.56 | 201.52 | 192.61 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 166.32 | 176.00 | 223.51 | 225.39 | 222.31 | 210.07 | 207.60 | 210.84 | 212.69 | 253.50 | 255.75 | 226.64 | 219.99 | 210.12 | 202.79 | 192.80 | 201.33 | 206.56 | 201.52 | 192.61 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 166.32 + — – —
= 166.32
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For IPG Photonics Corporation, the cash conversion cycle has shown fluctuations over the periods provided.
From March 2020 to June 2022, the cash conversion cycle generally exhibited an increasing trend, peaking at 255.75 days in June 2022. This indicates that IPG Photonics Corporation took longer to convert its investments in inventory and other resources into cash during this period.
However, from September 2022 to December 2024, the cash conversion cycle decreased significantly, reaching a low of 166.32 days in December 2024. This decline suggests that the company improved its efficiency in managing its working capital and converting investments into cash.
Overall, a lower cash conversion cycle is generally considered favorable as it implies that the company is able to generate cash flows more quickly and efficiently. Investors and analysts may view the decreasing trend in the cash conversion cycle for IPG Photonics Corporation positively, as it may indicate improved working capital management and liquidity.
Peer comparison
Dec 31, 2024