Minerals Technologies Inc (MTX)
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 | 79.49 | 70.97 | 76.67 | 77.12 | 76.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 79.49 | 70.97 | 76.67 | 77.12 | 76.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.49 + — – —
= 79.49
Minerals Technologies Inc's cash conversion cycle, a measure of how efficiently the company manages its working capital, has exhibited slight fluctuations over the past five years. From December 31, 2020, to December 31, 2024, the cash conversion cycle has ranged from a low of 70.97 days to a high of 79.49 days.
The trend indicates that the company's ability to convert its investments in raw materials and production into cash has been somewhat volatile, with a peak in 2024. A longer cash conversion cycle suggests the company is taking longer to turn its inventory into sales and subsequently into cash, potentially tying up capital and impacting liquidity.
Overall, Minerals Technologies Inc should focus on optimizing its inventory management and accounts receivable processes to potentially shorten its cash conversion cycle, improve cash flow efficiency, and enhance overall financial performance.
Peer comparison
Dec 31, 2024