ITT Inc (ITT)
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 | 96.53 | 94.35 | 84.31 | 77.60 | 74.06 |
| Days of sales outstanding (DSO) | days | 75.07 | 76.82 | 73.28 | 74.76 | 74.17 |
| Number of days of payables | days | 73.31 | 70.88 | 73.06 | 66.04 | 62.66 |
| Cash conversion cycle | days | 98.29 | 100.29 | 84.53 | 86.32 | 85.57 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.53 + 75.07 – 73.31
= 98.29
The cash conversion cycle of ITT Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 98.29 days, indicating that it took approximately 98.29 days for the company to convert its investments in inventory to cash flows from sales. This represents a slight improvement from 2022 when the cycle was 100.29 days.
Comparing 2023 to 2021, the cash conversion cycle increased from 84.53 days to 98.29 days, indicating that the company took longer to convert its investments in inventory to cash. However, it is worth noting that the cycle in 2023 is still below the 2021 level.
In 2020 and 2019, the cash conversion cycle was 86.32 days and 85.57 days, respectively, showing relatively consistent performance in these two years.
Overall, the trend in ITT Inc's cash conversion cycle suggests some fluctuations in the efficiency of working capital management over the years, with 2023 showing a slight improvement compared to the previous year. Monitoring this metric can provide insights into the company's operational efficiency and cash flow management.
Peer comparison
Dec 31, 2023