Minerals Technologies Inc (MTX)
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 | 60.55 | 68.01 | 67.27 | 65.27 | 59.22 |
| Days of sales outstanding (DSO) | days | 69.08 | 71.07 | 73.73 | 86.54 | 78.65 |
| Number of days of payables | days | 35.11 | 37.79 | 44.31 | 39.00 | 38.20 |
| Cash conversion cycle | days | 94.52 | 101.30 | 96.69 | 112.81 | 99.67 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.55 + 69.08 – 35.11
= 94.52
Minerals Technologies, Inc.'s cash conversion cycle has shown fluctuations over the past five years. In 2020, the company had a relatively high cash conversion cycle of 115.11 days, indicating a longer time to convert its investments in inventory and other resources into cash inflows. However, in 2021, the cycle decreased to 98.51 days, suggesting an improvement in the efficiency of the company's working capital management.
The trend continued in 2022 with a slightly higher cash conversion cycle of 103.45 days, indicating a longer average time to collect cash from its operations compared to the previous year. In 2023, the cycle further decreased to 97.14 days, signaling a potential enhancement in the company's cash conversion efficiency.
Overall, while there have been fluctuations in Minerals Technologies, Inc.'s cash conversion cycle over the past five years, the recent trend shows a general improvement in the company's ability to manage its working capital and convert its investments into cash more efficiently.
Peer comparison
Dec 31, 2023