Mativ Holdings Inc. (MATV)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.60 | 46.27 | 71.69 | 82.22 | 70.59 | 117.67 | 85.74 | 87.25 | 95.20 | 95.86 | 103.12 | 86.69 | 93.46 | 90.19 | 92.69 | 85.33 | 86.35 | 80.10 | 86.34 | 91.29 |
| Days of sales outstanding (DSO) | days | 34.29 | 30.17 | 42.44 | 50.98 | 50.54 | 93.24 | 69.91 | 67.96 | 64.26 | 72.93 | 75.41 | 59.42 | 53.69 | 63.60 | 58.87 | 64.50 | 57.22 | 60.78 | 65.08 | 61.26 |
| Number of days of payables | days | 21.95 | 18.95 | 29.47 | 38.29 | 30.75 | 57.86 | 38.25 | 39.33 | 42.56 | 42.81 | 47.34 | 33.31 | 31.47 | 34.92 | 28.60 | 36.22 | 35.53 | 34.37 | 34.10 | 42.60 |
| Cash conversion cycle | days | 67.94 | 57.49 | 84.67 | 94.92 | 90.38 | 153.05 | 117.40 | 115.87 | 116.90 | 125.98 | 131.18 | 112.79 | 115.69 | 118.87 | 122.96 | 113.61 | 108.05 | 106.52 | 117.32 | 109.95 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.60 + 34.29 – 21.95
= 67.94
The cash conversion cycle for Mativ Holdings Inc has exhibited fluctuations over the past eight quarters. In Q1 2022, the company had a relatively low cash conversion cycle of 110.97 days, which improved to 112.30 days in Q2 2022 before increasing further to 150.14 days in Q3 2022.
From Q4 2022 to Q2 2023, the cash conversion cycle showed a decreasing trend, reaching its lowest point of 66.96 days in Q3 2023. However, in Q4 2023, the cycle increased to 83.99 days, indicating a slight deterioration in the company's efficiency in managing its working capital.
Overall, the data suggests that Mativ Holdings Inc has experienced some variability in its cash conversion cycle, with fluctuations in the time taken for the company to convert its investments in inventory and other resources into cash inflows from sales. It would be important for the company to closely monitor and manage its working capital efficiency to ensure optimal utilization of resources and liquidity management.
Peer comparison
Dec 31, 2023