Johnson Controls International PLC (JCI)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.90 | 55.29 | 56.52 | 59.29 | 36.53 | 45.18 | 44.79 | 42.93 | 40.24 | 39.90 | 39.80 | 39.98 | 34.69 | 35.14 | 34.18 | 32.56 | 29.55 | 32.08 | 32.02 | 30.57 |
| Days of sales outstanding (DSO) | days | 97.92 | 89.47 | 90.61 | 82.32 | 82.56 | 90.93 | 84.75 | 82.54 | 83.83 | 86.07 | 84.65 | 85.57 | 89.08 | 90.11 | 85.57 | 86.81 | 91.56 | 87.15 | 85.57 | 85.93 |
| Number of days of payables | days | 57.11 | 79.72 | 75.94 | 78.43 | 68.26 | 62.77 | 63.89 | 61.36 | 65.95 | 63.94 | 64.90 | 67.32 | 63.18 | 63.31 | 58.58 | 54.63 | 52.00 | 49.13 | 49.19 | 52.22 |
| Cash conversion cycle | days | 70.71 | 65.04 | 71.18 | 63.18 | 50.83 | 73.34 | 65.65 | 64.10 | 58.12 | 62.03 | 59.55 | 58.24 | 60.60 | 61.94 | 61.18 | 64.74 | 69.10 | 70.10 | 68.39 | 64.28 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.90 + 97.92 – 57.11
= 70.71
The cash conversion cycle of Johnson Controls International PLC has shown some fluctuations over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Analyzing the data provided, we can see that the cash conversion cycle has ranged from a low of 50.83 days to a high of 73.34 days over the last few quarters. A shorter cash conversion cycle indicates that the company is able to generate cash quickly from its operations, while a longer cycle may indicate inefficiencies in the company's operations.
In the most recent quarter, ending on September 30, 2024, the cash conversion cycle stood at 70.71 days, which is relatively high compared to the previous quarter. This suggests that Johnson Controls International PLC may be taking longer to convert its investments in inventory and other resources into cash.
Overall, a careful analysis of the cash conversion cycle along with other financial metrics can provide insights into the efficiency of Johnson Controls International PLC's working capital management and its ability to generate cash flows from its core operations.
Peer comparison
Sep 30, 2024
See also:
Johnson Controls International PLC Cash Conversion Cycle (Quarterly Data)