Mettler-Toledo International Inc (MTD)
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 | 80.77 | 91.04 | 100.03 | 97.85 | 84.59 |
| Days of sales outstanding (DSO) | days | 64.77 | 63.97 | 66.05 | 63.55 | 70.25 |
| Number of days of payables | days | 50.93 | 49.64 | 57.19 | 64.42 | 49.97 |
| Cash conversion cycle | days | 94.60 | 105.36 | 108.89 | 96.98 | 104.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.77 + 64.77 – 50.93
= 94.60
The cash conversion cycle of Mettler-Toledo International Inc has shown fluctuations over the years based on the provided data.
- As of December 31, 2020, the cash conversion cycle was 104.87 days, indicating that it took the company approximately 104.87 days to convert its investments in raw materials into cash from sales.
- By December 31, 2021, the company managed to improve its cash conversion cycle to 96.98 days, reflecting a more efficient management of working capital.
- However, by December 31, 2022, the cash conversion cycle increased to 108.89 days, suggesting a prolonged period between the company's spending on production and the eventual collection of cash from sales.
- As of December 31, 2023, the cash conversion cycle slightly decreased to 105.36 days, but still remained higher than the previous year.
- In the most recent period ending on December 31, 2024, the cash conversion cycle notably improved to 94.60 days, signaling a potential enhancement in the company's efficiency in managing its cash flow and working capital.
Overall, despite some fluctuations, Mettler-Toledo International Inc has demonstrated efforts to optimize its cash conversion cycle over the years, with a notable improvement in the most recent period, which could suggest enhanced operational efficiency and effective working capital management strategies.
Peer comparison
Dec 31, 2024