Kaiser Aluminum Corporation (KALU)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.65 | 61.89 | 62.46 | 63.54 | 59.48 | 61.10 | 53.48 | 52.97 | 62.37 | 81.86 | 101.70 | 149.90 | 57.66 | 54.39 | 57.77 | 58.56 | 52.26 | 56.92 | 66.99 | 65.72 |
| Days of sales outstanding (DSO) | days | 38.87 | 41.29 | 42.53 | 40.85 | 32.03 | 33.26 | 37.57 | 49.89 | 47.86 | 66.81 | 95.15 | 103.73 | 36.32 | 34.22 | 33.22 | 42.97 | 40.28 | 44.73 | 41.86 | 44.86 |
| Number of days of payables | days | 33.17 | 30.80 | 29.63 | 33.36 | 34.54 | 38.30 | 47.80 | 54.36 | 54.17 | 67.43 | 91.32 | 101.00 | 32.66 | 21.89 | 19.43 | 34.27 | 27.07 | 27.73 | 29.36 | 34.95 |
| Cash conversion cycle | days | 68.34 | 72.37 | 75.36 | 71.03 | 56.97 | 56.06 | 43.25 | 48.51 | 56.06 | 81.24 | 105.53 | 152.64 | 61.32 | 66.71 | 71.57 | 67.25 | 65.47 | 73.92 | 79.48 | 75.63 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.65 + 38.87 – 33.17
= 68.34
The cash conversion cycle of Kaiser Aluminum Corp has displayed some variability over the last eight quarters. In Q2 2022, the company had the shortest cash conversion cycle of 47.98 days, indicating that it took the company approximately 47.98 days to convert its investments in inventory and other resources into cash flows from sales. This was followed by a slight increase in Q3 2022 to 61.83 days before decreasing again in Q4 2022 to 64.76 days.
Subsequently, the cash conversion cycle increased in the first two quarters of 2023, reaching its peak at 78.45 days in Q2 2023. However, Kaiser Aluminum Corp managed to reduce the cycle in Q4 2023 to 69.66 days, showing improvement compared to the previous two quarters.
Overall, the trend in the cash conversion cycle of Kaiser Aluminum Corp has shown fluctuations but with a general uptrend from Q1 2023 to Q2 2023, followed by a slight improvement in Q4 2023. This suggests that the company may have experienced challenges in managing its working capital efficiency during the earlier quarters of 2023 but has made some progress in alleviating this issue by the end of the year. Monitoring this metric will be crucial to evaluating the company's effectiveness in managing its cash flow and working capital in the future.
Peer comparison
Dec 31, 2023