Itron Inc (ITRI)
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 | 50.37 | 51.94 | 55.80 | 56.12 | 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 |
| Days of sales outstanding (DSO) | days | 52.38 | 51.59 | 49.30 | 54.48 | 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 |
| Number of days of payables | days | 26.96 | 28.63 | 35.34 | 43.69 | 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 |
| Cash conversion cycle | days | 75.79 | 74.90 | 69.76 | 66.92 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.37 + 52.38 – 26.96
= 75.79
The cash conversion cycle of Itron Inc, which represents the time it takes for the company to convert its resources invested in inventory and accounts receivable back into cash, has shown fluctuations over the stated periods.
From March 31, 2020, to December 31, 2021, the cash conversion cycle ranged from around 51 to 62 days. The cycle then decreased to 48 days by September 30, 2022, indicating an improvement in the company's efficiency in managing its working capital.
However, from June 30, 2023, onwards, the cash conversion cycle began to increase, reaching 75.79 days by December 31, 2024. This trend suggests a potential issue with the company's ability to efficiently manage its inventory and receivables, which could lead to cash flow challenges in the future.
Overall, the analysis of Itron Inc's cash conversion cycle indicates fluctuations and potential challenges in effectively managing working capital, highlighting the importance for the company to focus on improving its cash conversion efficiency to sustain its financial health.
Peer comparison
Dec 31, 2024