Kaiser Aluminum Corporation (KALU)
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 | 66.21 | 62.65 | 59.26 | 61.93 | 60.83 | 60.62 | 61.18 | 62.28 | 58.34 | 59.49 | 52.09 | 51.52 | 60.53 | 78.93 | 97.72 | 145.03 | 55.84 | 54.41 | 57.77 | 58.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 66.21 | 62.65 | 59.26 | 61.93 | 60.83 | 60.62 | 61.18 | 62.28 | 58.34 | 59.49 | 52.09 | 51.52 | 60.53 | 78.93 | 97.72 | 145.03 | 55.84 | 54.41 | 57.77 | 58.02 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 66.21 + — – —
= 66.21
The cash conversion cycle (CCC) of Kaiser Aluminum Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. In general, the company's CCC is a measure of the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, it can be observed that Kaiser Aluminum Corporation's CCC ranged from a low of 51.52 days on March 31, 2022, to a high of 145.03 days on March 31, 2021. This significant increase can indicate challenges in managing its working capital efficiently during that period.
Overall, the company has managed to improve its cash conversion cycle in recent periods, with the CCC decreasing to 59.26 days on June 30, 2024, and further to 66.21 days on December 31, 2024. A decreasing CCC is generally a positive sign as it implies that the company is managing its liquidity and working capital more effectively.
It is important to note that the CCC is influenced by various factors, including inventory turnover, accounts receivable collection period, and accounts payable payment period. Analyzing the CCC can help stakeholders understand how efficiently the company is managing its resources and converting them into cash.
In conclusion, Kaiser Aluminum Corporation's cash conversion cycle has shown fluctuations over the analyzed period, but recent improvements in the CCC suggest that the company is working towards better efficiency in managing its working capital and cash flows.
Peer comparison
Dec 31, 2024