Altria Group (MO)
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 | 64.87 | 65.44 | 69.30 | 72.34 | 70.85 | 68.39 | 67.89 | 71.07 | 66.86 | 60.80 | 61.56 | 63.69 | 61.22 | 56.99 | 88.97 | 98.03 | 91.79 | 89.11 | 92.15 | 95.34 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 64.87 | 65.44 | 69.30 | 72.34 | 70.85 | 68.39 | 67.89 | 71.07 | 66.86 | 60.80 | 61.56 | 63.69 | 61.22 | 56.99 | 88.97 | 98.03 | 91.79 | 89.11 | 92.15 | 95.34 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.87 + — – —
= 64.87
The cash conversion cycle, a key metric for measuring how efficiently a company manages its working capital, for Altria Group has shown fluctuating trends over the reported periods.
From March 2020 to September 2021, the cash conversion cycle steadily decreased from 95.34 days to 56.99 days. This indicates a positive trend of the company managing its cash, inventory, and receivables more efficiently during this period.
However, there was a slight increase in the cash conversion cycle from September 2021 to March 2024, reaching a peak of 72.34 days in March 2024. This increase suggests that Altria Group might have faced challenges in managing its working capital effectively during this time.
From June 2024 to December 2024, there was a slight decrease in the cash conversion cycle, indicating a potential improvement in managing working capital efficiency during that period.
Overall, analyzing the cash conversion cycle trends for Altria Group reveals periods of both improvement and challenges in managing working capital efficiently. Investors and analysts may further investigate the reasons behind these fluctuations to assess the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024