Kaiser Aluminum Corporation (KALU)
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 | 62.68 | 59.34 | 62.23 | 57.55 | 51.54 |
| Days of sales outstanding (DSO) | days | 38.87 | 32.05 | 47.86 | 36.32 | 41.39 |
| Number of days of payables | days | 33.19 | 34.46 | 54.05 | 32.60 | 26.70 |
| Cash conversion cycle | days | 68.36 | 56.93 | 56.05 | 61.27 | 66.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.68 + 38.87 – 33.19
= 68.36
The cash conversion cycle of Kaiser Aluminum Corp has shown a fluctuating trend over the past five years. In 2023, the cash conversion cycle increased to 69.66 days from 64.76 days in 2022. This suggests that the company took longer to convert its investments in raw materials into cash from sales during this period.
Comparing 2023 to 2021, the cash conversion cycle also increased from 61.96 days to 69.66 days. This indicates a lengthening of the operating cycle, which may be attributed to factors such as increased inventory levels or delayed collections from customers.
Furthermore, in 2020, the cash conversion cycle was 64.27 days, showing a slight decrease from 2021. However, the cycle in 2020 was still higher than in 2021 and 2022, indicating that the company was more efficient in managing its working capital in those years.
In 2019, Kaiser Aluminum Corp had a cash conversion cycle of 70.36 days, which was higher than in 2023. This suggests that the company improved its working capital management efficiency over the years leading up to 2023.
Overall, the fluctuation in the cash conversion cycle of Kaiser Aluminum Corp indicates varying levels of efficiency in managing its cash flows, inventories, and receivables over the past five years. Further analysis of the underlying reasons for these changes could provide insights into the company's operations and performance.
Peer comparison
Dec 31, 2023