Itron Inc (ITRI)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.42 | 56.95 | 57.83 | 58.36 | 51.55 | 43.25 | 35.78 | 35.13 | 33.65 | 36.88 | 35.95 | 33.47 | 34.49 | 36.84 | 40.34 | 37.79 | 38.37 | 39.55 | 39.86 | 38.91 |
| Days of sales outstanding (DSO) | days | 51.14 | 56.41 | 60.64 | 61.55 | 57.21 | 54.92 | 51.58 | 58.80 | 56.78 | 59.09 | 60.50 | 65.13 | 63.39 | 62.97 | 64.55 | 69.11 | 70.10 | 70.62 | 71.18 | 73.76 |
| Number of days of payables | days | 39.68 | 46.27 | 50.88 | 53.89 | 53.46 | 50.09 | 34.72 | 41.74 | 39.20 | 39.66 | 35.19 | 35.88 | 40.78 | 41.69 | 42.77 | 55.60 | 55.25 | 53.98 | 55.58 | 58.33 |
| Cash conversion cycle | days | 67.88 | 67.09 | 67.59 | 66.02 | 55.30 | 48.08 | 52.64 | 52.19 | 51.23 | 56.31 | 61.26 | 62.72 | 57.10 | 58.11 | 62.12 | 51.29 | 53.22 | 56.19 | 55.46 | 54.34 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.42 + 51.14 – 39.68
= 67.88
The cash conversion cycle for Itron Inc. has been showing some variability over the past year. In Q4 2023, the company's cash conversion cycle was 72.06 days, which was slightly higher compared to the previous quarter at 69.70 days. 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.
Looking at the trend over the past year, there has been an increasing trend in the cash conversion cycle for Itron Inc. compared to the same quarters in the previous year. This suggests that the company may be taking longer to convert its investments into cash or is facing challenges in managing its working capital efficiently.
The increase in the cash conversion cycle indicates that Itron Inc. may be facing difficulties in managing its inventory levels, collecting accounts receivable, or extending payment periods to suppliers. This can have implications for the company's liquidity and profitability as it affects the speed at which cash flows through the business.
Overall, Itron Inc. should focus on improving its working capital management practices to reduce its cash conversion cycle and enhance its overall financial performance. It is essential for the company to streamline its operations, optimize inventory levels, and improve its accounts receivable collection process to shorten the cash conversion cycle and unlock cash flow efficiencies.
Peer comparison
Dec 31, 2023