Koppers Holdings Inc (KOP)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 88.46 | 80.80 | 79.36 | 85.19 | 82.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 88.46 | 80.80 | 79.36 | 85.19 | 82.50 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.46 + — – —
= 88.46
The cash conversion cycle for Koppers Holdings Inc has shown some fluctuations over the past five years. Starting at 82.50 days in December 2020, it increased to 85.19 days by December 2021, before declining to 79.36 days by December 2022. The cycle then slightly increased to 80.80 days by December 2023 and further rose to 88.46 days by December 2024.
Analyzing the cash conversion cycle can provide insights into the company's efficiency in managing its working capital. A longer cash conversion cycle may indicate potential issues with liquidity or inefficient management of accounts receivable, inventory, and accounts payable. On the other hand, a shorter cycle suggests effective working capital management and faster conversion of inventory into cash.
Koppers Holdings Inc should continue monitoring and analyzing its cash conversion cycle to identify areas for improvement and optimize its working capital management strategies, thereby enhancing overall financial performance and sustainability.
Peer comparison
Dec 31, 2024