Mettler-Toledo International Inc (MTD)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	91.04	100.03	97.85	84.59	78.99
Days of sales outstanding (DSO)	days	63.97	66.05	63.55	70.25	68.70
Number of days of payables	days	49.64	57.19	64.42	49.97	53.45
Cash conversion cycle	days	105.36	108.89	96.98	104.87	94.24

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.04 + 63.97 – 49.64
= 105.36

The cash conversion cycle of Mettler-Toledo International, Inc. has fluctuated over the past five years. In 2023, the cash conversion cycle decreased to 105.36 days from 108.89 days in 2022. This indicates that the company improved its efficiency in managing cash flows related to its operations.

In 2021, the cash conversion cycle increased to 96.98 days from 104.87 days in 2020. This increase suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during that period.

However, in 2019, the cash conversion cycle decreased to 94.24 days from 104.87 days in 2018, showing that the company became more efficient in converting its resources into cash.

Overall, fluctuations in the cash conversion cycle of Mettler-Toledo International, Inc. over the past five years indicate changes in the company's working capital management efficiency. It is important for the company to continue monitoring and improving its cash conversion cycle to ensure optimal utilization of resources and maintain healthy liquidity levels.