Koppers Holdings Inc (KOP)
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 | 86.53 | 84.90 | 83.86 | 83.00 | 82.77 | 78.46 | 79.17 | 82.64 | 79.36 | 71.51 | 81.04 | 86.23 | 85.19 | 81.85 | 81.31 | 83.36 | 82.50 | 73.63 | 69.28 | 71.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 86.53 | 84.90 | 83.86 | 83.00 | 82.77 | 78.46 | 79.17 | 82.64 | 79.36 | 71.51 | 81.04 | 86.23 | 85.19 | 81.85 | 81.31 | 83.36 | 82.50 | 73.63 | 69.28 | 71.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.53 + — – —
= 86.53
The cash conversion cycle of Koppers Holdings Inc has shown some fluctuations over the periods analyzed. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, provides insights into the efficiency of the company's working capital management.
From March 31, 2020, to December 31, 2024, the cash conversion cycle has ranged from a low of 69.28 days to a high of 86.53 days. Generally, a shorter cash conversion cycle is favorable as it indicates that the company is able to quickly convert its investments into cash, thereby improving liquidity and potentially reducing the need for external financing.
Analyzing the trend, there seems to be some volatility in the cash conversion cycle with slight fluctuations over the quarters. An increase in the cash conversion cycle could suggest potential issues in managing inventory, collecting receivables, or paying suppliers, which might lead to cash flow challenges. On the other hand, a decreasing trend in the cash conversion cycle could imply improvements in working capital management and operational efficiency.
It would be beneficial for Koppers Holdings Inc to closely monitor and analyze the components of the cash conversion cycle, such as days inventory outstanding, days sales outstanding, and days payables outstanding, to identify areas for improvement and implement strategies to optimize working capital efficiency. Additionally, maintaining a balance between managing liquidity and maximizing sales growth is crucial for the company's long-term financial health.
Peer comparison
Dec 31, 2024