Littelfuse Inc (LFUS)
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 | 106.90 | 115.15 | 112.25 | 112.72 | 117.17 | 117.01 | 125.86 | 135.59 | 132.65 | 132.57 | 129.48 | 125.42 | 124.37 | 107.07 | 103.81 | 104.81 | 99.48 | 97.90 | 102.09 | 88.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 106.90 | 115.15 | 112.25 | 112.72 | 117.17 | 117.01 | 125.86 | 135.59 | 132.65 | 132.57 | 129.48 | 125.42 | 124.37 | 107.07 | 103.81 | 104.81 | 99.48 | 97.90 | 102.09 | 88.77 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 106.90 + — – —
= 106.90
The cash conversion cycle of Littelfuse Inc has fluctuated over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2024, the cash conversion cycle ranged from 88.77 days to 135.59 days. Generally, a longer cash conversion cycle indicates that the company is taking longer to convert its investments into cash and may face liquidity challenges or inefficiencies in its operations.
In the first half of 2022, the cash conversion cycle peaked at 132.65 days, suggesting possible issues with inventory management or collection of receivables. However, by December 2024, the cycle had decreased to 106.90 days, indicating improved efficiency in the company's operations or better working capital management.
Overall, a downward trend in the cash conversion cycle is a positive sign as it shows that the company is improving its ability to generate cash from its operating activities. However, it is essential to monitor this metric closely to ensure that the company maintains a healthy balance between liquidity and operational efficiency.
Peer comparison
Dec 31, 2024