Mativ Holdings Inc. (MATV)
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 | 80.16 | 77.25 | 112.87 | 85.35 | 85.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 80.16 | 77.25 | 112.87 | 85.35 | 85.62 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.16 + — – —
= 80.16
The cash conversion cycle (CCC) of Mativ Holdings Inc. provides insight into the efficiency of the company's working capital management. In analyzing the CCC trend from December 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes for the company to convert its investments in inventory and accounts receivable into cash from sales.
Starting at 85.62 days in December 2020, we note a marginal improvement to 85.35 days by December 2021, indicating a slight enhancement in the company's ability to convert assets into cash. However, there was a significant increase in the CCC to 112.87 days by December 2022, suggesting potential challenges in managing working capital efficiently.
The trend, fortunately, reversed as the CCC decreased to 77.25 days by December 2023, reflecting a positive development in the company's cash conversion efficiency. This improvement continued, with a further reduction to 80.16 days by December 2024, as the company streamlined its operations to enhance the conversion of investments into cash.
Overall, Mativ Holdings Inc. experienced fluctuations in its cash conversion cycle over the analyzed period, with notable improvements in recent years. The management should continue to focus on optimizing working capital and operational processes to maintain and further enhance cash conversion efficiency.
Peer comparison
Dec 31, 2024