Mativ Holdings Inc. (MATV)
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 | 80.16 | 80.70 | 78.76 | 71.78 | 68.24 | 64.63 | 86.59 | 100.07 | 112.87 | 117.63 | 80.48 | 81.73 | 85.35 | 95.82 | 100.61 | 80.45 | 85.62 | 85.95 | 87.38 | 79.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 80.16 | 80.70 | 78.76 | 71.78 | 68.24 | 64.63 | 86.59 | 100.07 | 112.87 | 117.63 | 80.48 | 81.73 | 85.35 | 95.82 | 100.61 | 80.45 | 85.62 | 85.95 | 87.38 | 79.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.16 + — – —
= 80.16
The cash conversion cycle of Mativ Holdings 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. A shorter cash conversion cycle is generally favorable as it indicates quicker turnover of assets and better liquidity management.
Analyzing the data provided, we observe that the company's cash conversion cycle ranged from a low of 64.63 days on September 30, 2023, to a high of 117.63 days on September 30, 2022. Overall, the trend appears to be somewhat volatile, with fluctuations in the duration of the cash conversion cycle over the periods examined.
Efficient management of inventory levels, accounts receivable, and accounts payable is critical in influencing the cash conversion cycle. A decrease in the cycle could indicate improved efficiency in converting investments into cash. It would be essential for Mativ Holdings Inc. to further analyze the factors contributing to these fluctuations to identify opportunities for improving working capital management and overall operational efficiency.
Further analysis and comparison with industry benchmarks and historical performance could provide additional insights into the company's cash management practices and overall financial health.
Peer comparison
Dec 31, 2024