Mettler-Toledo International Inc (MTD)

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	91.04	86.35	89.68	96.59	100.03	101.92	104.96	102.37	97.85	93.12	88.95	87.39	84.59	85.30	88.81	85.22	78.99	81.26	83.02	81.95
Days of sales outstanding (DSO)	days	63.97	59.26	59.81	59.13	66.05	57.23	59.17	59.17	63.55	60.86	63.06	64.70	70.25	63.67	60.93	63.55	68.70	61.59	61.42	60.45
Number of days of payables	days	49.64	39.96	38.65	39.93	57.19	51.19	60.61	59.47	64.42	53.53	53.55	51.48	49.97	42.79	46.19	49.16	53.45	42.86	46.56	50.73
Cash conversion cycle	days	105.36	105.65	110.84	115.80	108.89	107.96	103.52	102.08	96.98	100.44	98.46	100.62	104.87	106.18	103.55	99.61	94.24	99.98	97.89	91.67

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 for Mettler-Toledo International, Inc. has shown fluctuations over the researched quarters. In Q1 2023, the company's cash conversion cycle was 115.80 days, indicating that it took the company approximately 115.80 days to convert its investments in inventory into cash receipts from customers. This was higher compared to the previous quarter, Q4 2022, where the cash conversion cycle was 108.89 days.

Throughout the quarters, there were fluctuations in the cash conversion cycle, reaching its lowest point in Q2 2022 at 102.08 days. Generally, a lower cash conversion cycle suggests more efficiency in managing the company's working capital and liquidity.

It is essential for the management of Mettler-Toledo International, Inc. to focus on maintaining an optimal cash conversion cycle to ensure smooth operations and manage cash flow effectively. Monitoring and improving the cash conversion cycle could lead to better working capital management and enhanced financial performance in the future.