Materion Corporation (MTRN)
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 | 100.31 | 107.24 | 95.91 | 93.64 | 79.03 |
| Days of sales outstanding (DSO) | days | 42.90 | 43.07 | 45.25 | 54.24 | 51.73 |
| Number of days of payables | days | 24.07 | 30.52 | 24.46 | 22.36 | 17.53 |
| Cash conversion cycle | days | 119.14 | 119.79 | 116.70 | 125.51 | 113.22 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 100.31 + 42.90 – 24.07
= 119.14
To analyze Materion Corporation's cash conversion cycle over the years, we observe the trend as follows:
- As of December 31, 2020, the cash conversion cycle was 113.22 days.
- By December 31, 2021, the cycle had increased to 125.51 days.
- Subsequently, on December 31, 2022, there was a slight decrease in the cycle to 116.70 days.
- The cycle rose again to 119.79 days by December 31, 2023.
- Lastly, by December 31, 2024, the cash conversion cycle was slightly lower at 119.14 days.
Overall, Materion Corporation experienced fluctuations in its cash conversion cycle over the years, indicating shifts in its ability to convert investments in raw materials and other inputs into cash flows from sales. Efforts to manage inventory turnover, accounts receivable collection, and accounts payable payment periods may have impacted the fluctuations observed in the cash conversion cycle.