Littelfuse Inc (LFUS)
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 | 108.28 | 118.46 | 132.65 | 124.37 | 99.70 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 108.28 | 118.46 | 132.65 | 124.37 | 99.70 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.28 + — – —
= 108.28
The cash conversion cycle (CCC) of Littelfuse Inc has shown some fluctuations over the past few years.
- In December 2020, the CCC stood at 99.70 days, indicating that it took the company approximately 99.70 days to convert its investments in inventory and accounts receivable into cash flows from sales.
- By December 2021, the CCC increased to 124.37 days, suggesting a slowdown in the company's ability to convert its resources into cash, potentially indicating longer inventory or receivables turnover periods.
- Subsequently, the CCC continued to rise, reaching 132.65 days by December 2022. This extended period could potentially signal challenges in managing working capital efficiently or delays in collecting receivables.
- In December 2023, there was a slight improvement as the CCC decreased to 118.46 days. This reduction may indicate that the company made some improvements in managing its working capital components.
- Finally, by December 2024, the CCC decreased further to 108.28 days, indicating a more efficient cash conversion cycle compared to previous years.
Overall, fluctuations in the cash conversion cycle can provide insights into how effectively Littelfuse Inc is managing its working capital, inventory, and accounts receivable, highlighting trends in operational efficiency and potential liquidity challenges. Monitoring and analyzing these trends can help stakeholders assess the company's financial health and performance over time.
Peer comparison
Dec 31, 2024