MSA Safety (MSA)
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 | 114.31 | 136.98 | 124.58 | 119.38 | 114.43 | 127.97 | 135.75 | 144.43 | 144.58 | 151.89 | 151.63 | 146.25 | 129.91 | 115.95 | 111.27 | 107.41 | 95.29 | 125.19 | 108.63 | 92.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 114.31 | 136.98 | 124.58 | 119.38 | 114.43 | 127.97 | 135.75 | 144.43 | 144.58 | 151.89 | 151.63 | 146.25 | 129.91 | 115.95 | 111.27 | 107.41 | 95.29 | 125.19 | 108.63 | 92.37 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 114.31 + — – —
= 114.31
The cash conversion cycle for MSA Safety, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has exhibited fluctuations over the past several quarters.
From March 2020 to December 2024, the trend in the cash conversion cycle has shown periods of both increase and decrease. The cycle started at 92.37 days in March 2020, increased to 151.89 days by September 2022, and then declined to 114.31 days by December 2024.
The company's management of inventory, accounts receivable, and accounts payable has impacted the cash conversion cycle during this period. A longer cash conversion cycle indicates that MSA Safety takes more time to generate cash from its operations, potentially facing issues related to working capital management. Conversely, a shorter cycle suggests improved efficiency in cash flow generation.
Monitoring the trend of the cash conversion cycle over time can provide insights into the company's operational efficiency and financial health. It is essential for MSA Safety to continue evaluating and optimizing its working capital management practices to maintain a healthy cash conversion cycle and effectively manage its liquidity and cash flow.
Peer comparison
Dec 31, 2024