Koppers Holdings Inc (KOP)
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 | 72.97 | 69.84 | 73.09 | 70.70 | 63.70 |
| Days of sales outstanding (DSO) | days | 35.46 | 40.67 | 40.73 | 39.72 | 35.38 |
| Number of days of payables | days | 37.42 | 40.72 | 40.04 | 36.83 | 35.95 |
| Cash conversion cycle | days | 71.02 | 69.79 | 73.78 | 73.58 | 63.14 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.97 + 35.46 – 37.42
= 71.02
The cash conversion cycle for Koppers Holdings Inc has shown some fluctuation over the past five years. In 2023, the company's cash conversion cycle increased to 74.98 days from 72.84 days in 2022. This indicates that it took the company approximately 75 days to convert its investments in inventory into cash receipts from customers and finally into cash.
Comparing this to previous years, we observe that the cash conversion cycle was higher than in 2021 (78.27 days) and 2020 (78.07 days), suggesting a slight improvement in operational efficiency. However, it remains higher than in 2019 (67.11 days).
Overall, the trend in Koppers Holdings Inc's cash conversion cycle indicates some variability, with potential room for improvement in managing the company's cash flow and working capital efficiency. Further analysis and measures may be needed to optimize the cash conversion cycle and enhance the company's overall financial performance.
Peer comparison
Dec 31, 2023