Knowles Cor (KN)
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 | 103.91 | 97.06 | 154.98 | 174.44 | 118.71 | 178.95 | 163.61 | 176.00 | 134.41 | 150.52 | 138.41 | 128.26 | 109.87 | 107.96 | 113.80 | 102.18 | 96.75 | 120.76 | 119.68 | 113.04 |
| Days of sales outstanding (DSO) | days | 55.86 | 50.84 | 68.58 | 68.92 | 77.09 | 69.78 | 62.19 | 56.48 | 64.29 | 58.58 | 54.45 | 60.14 | 61.64 | 54.02 | 50.17 | 52.19 | 62.75 | 60.53 | 47.23 | 52.52 |
| Number of days of payables | days | 51.51 | 26.58 | 42.80 | 58.15 | 33.56 | 50.84 | 41.35 | 59.65 | 32.83 | 45.09 | 47.21 | 58.91 | 65.23 | 50.55 | 50.94 | 58.16 | 52.28 | 51.97 | 55.24 | 55.75 |
| Cash conversion cycle | days | 108.25 | 121.33 | 180.76 | 185.21 | 162.24 | 197.89 | 184.45 | 172.83 | 165.87 | 164.00 | 145.64 | 129.49 | 106.28 | 111.43 | 113.02 | 96.21 | 107.22 | 129.32 | 111.68 | 109.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 103.91 + 55.86 – 51.51
= 108.25
The cash conversion cycle of Knowles Cor has fluctuated over the years, indicating varying efficiency in managing its cash, inventory, and receivables.
From March 31, 2020, to September 30, 2021, the cash conversion cycle ranged between approximately 96 to 129 days. This period reflected the company's ability to convert its resources into cash effectively. Notably, December 31, 2020, showed a significant improvement with only 107.22 days.
However, from March 31, 2022, to December 31, 2024, there was a noticeable increase in the cash conversion cycle, peaking at around 197.89 days on September 30, 2023. This increase suggests possible challenges in managing inventory levels, collections from customers, or payment to suppliers, impacting the company's liquidity and operational efficiency.
The latest data on December 31, 2024, shows a reduction in the cash conversion cycle to 108.25 days, signaling potential efforts by Knowles Cor to improve its working capital management. Monitoring the cash conversion cycle over time can help assess the company's financial health and operational effectiveness in the long term.
Peer comparison
Dec 31, 2024