Itron Inc (ITRI)
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 | 56.42 | 51.70 | 33.63 | 34.49 | 38.37 |
| Days of sales outstanding (DSO) | days | 51.16 | 57.24 | 57.89 | 65.14 | 70.46 |
| Number of days of payables | days | 39.68 | 53.62 | 39.18 | 40.78 | 55.25 |
| Cash conversion cycle | days | 67.90 | 55.32 | 52.34 | 58.85 | 53.58 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.42 + 51.16 – 39.68
= 67.90
The cash conversion cycle of Itron Inc. has exhibited some variability in recent years. In 2023, the company's cash conversion cycle increased to 72.06 days from 54.58 days in 2022. This indicates that it took Itron Inc. longer to convert its investments in inventory and accounts receivable into cash during 2023.
Compared to 2021 and 2019, where the cash conversion cycle was 47.89 days and 48.08 days respectively, 2023 saw a significant increase. This suggests that the company may have faced challenges in managing its inventory and collecting receivables efficiently in 2023.
Overall, monitoring the cash conversion cycle over time can provide insights into the company's liquidity management and operational efficiency in converting its resources into cash.
Peer comparison
Dec 31, 2023