Koppers Holdings Inc (KOP)
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 | 72.96 | 69.08 | 69.87 | 72.86 | 69.86 | 62.37 | 70.22 | 74.27 | 73.12 | 69.76 | 69.31 | 71.18 | 70.72 | 63.55 | 59.95 | 61.68 | 63.73 | 59.42 | 61.34 | 63.17 |
| Days of sales outstanding (DSO) | days | 35.46 | 42.87 | 45.97 | 44.41 | 40.67 | 45.66 | 47.85 | 48.26 | 40.73 | 44.57 | 45.83 | 43.61 | 39.72 | 43.96 | 42.28 | 38.99 | 35.09 | 37.61 | 45.41 | 41.10 |
| Number of days of payables | days | 37.41 | 38.43 | 36.52 | 42.12 | 40.73 | 38.13 | 42.55 | 42.71 | 40.05 | 37.80 | 35.82 | 34.13 | 36.84 | 30.38 | 30.10 | 34.75 | 35.96 | 27.13 | 31.22 | 31.66 |
| Cash conversion cycle | days | 71.01 | 73.52 | 79.32 | 75.16 | 69.80 | 69.90 | 75.52 | 79.82 | 73.79 | 76.53 | 79.32 | 80.67 | 73.59 | 77.13 | 72.13 | 65.92 | 62.86 | 69.89 | 75.53 | 72.61 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.96 + 35.46 – 37.41
= 71.01
The cash conversion cycle for Koppers Holdings Inc has shown some variability over the past eight quarters. It indicates the time it takes for the company to convert its investment in inventory into cash from the sale of products or services.
The trend in the cash conversion cycle has been fluctuating, with values ranging from 72.43 days to 83.79 days. A lower number suggests that the company is managing its working capital efficiently, while a higher number indicates a longer period between spending cash on inventory and receiving cash from sales.
Overall, the company's cash conversion cycle has been relatively stable, with minor fluctuations over the observed period. It is important for Koppers Holdings Inc to monitor and manage its cash conversion cycle effectively to optimize its working capital and improve its liquidity position.
Peer comparison
Dec 31, 2023