Integer Holdings Corp (ITGR)
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 | 61.60 | 61.51 | 52.90 | 57.81 | 56.35 |
| Days of sales outstanding (DSO) | days | 57.18 | 62.11 | 57.48 | 55.53 | 58.02 |
| Number of days of payables | days | 30.91 | 32.64 | 26.11 | 19.96 | 21.89 |
| Cash conversion cycle | days | 87.86 | 90.98 | 84.27 | 93.37 | 92.48 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 61.60 + 57.18 – 30.91
= 87.86
The cash conversion cycle of Integer Holdings Corp has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle was 91.92 days, indicating an improvement compared to the prior year. This implies that the company was able to convert its investment in inventory into cash more efficiently, which is a positive sign.
However, when looking at a longer trend, the cash conversion cycle has been somewhat volatile, with fluctuations observed from year to year. In 2022 and 2019, the company experienced longer cash conversion cycles of 95.20 days and 97.04 days, respectively, suggesting a slower conversion of inventory into cash during those periods. On the other hand, the company managed to optimize its cash conversion cycle in 2021, with a cycle of 88.46 days, indicating efficient management of working capital.
Overall, Integer Holdings Corp should continue monitoring and managing its cash conversion cycle to ensure optimal efficiency in converting inventory into cash, as this metric plays a crucial role in the company's liquidity and operational performance.
Peer comparison
Dec 31, 2023