Minerals Technologies Inc (MTX)
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 | 62.43 | 64.45 | 70.21 | 73.04 | 68.01 | 68.70 | 70.18 | 72.80 | 67.30 | 65.71 | 64.00 | 63.43 | 65.25 | 67.19 | 68.49 | 59.63 | 59.26 | 60.16 | 60.29 | 60.33 |
| Days of sales outstanding (DSO) | days | 68.62 | 72.34 | 72.89 | — | 71.07 | — | — | — | 73.73 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 36.20 | 35.29 | 40.44 | 44.54 | 37.79 | 41.88 | 45.28 | 47.68 | 44.33 | 43.21 | 43.43 | 43.02 | 38.99 | 37.05 | 35.39 | 37.39 | 38.23 | 41.22 | 43.91 | 42.26 |
| Cash conversion cycle | days | 94.85 | 101.50 | 102.66 | 28.50 | 101.29 | 26.81 | 24.90 | 25.12 | 96.70 | 22.50 | 20.58 | 20.42 | 26.26 | 30.15 | 33.10 | 22.24 | 21.03 | 18.95 | 16.38 | 18.07 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.43 + 68.62 – 36.20
= 94.85
The cash conversion cycle of Minerals Technologies, Inc. has shown slight fluctuations over the past eight quarters. The company's cash conversion cycle ranged between 97.14 days and 105.70 days during this period.
In Q4 2023, the company's cash conversion cycle improved to 97.14 days compared to the previous quarter, indicating that the company was able to convert its invested cash back into cash more efficiently during this period.
On average, the cash conversion cycle for Minerals Technologies, Inc. has been approximately 103 days over the past two years. This means that, on average, it takes the company 103 days to convert its investments in inventory and accounts receivable into cash.
Tracking the cash conversion cycle can help assess the efficiency of the company's working capital management. A decreasing trend in the cash conversion cycle generally indicates improved efficiency in converting investments into cash. The company should continue to monitor and manage its cash conversion cycle effectively to optimize its working capital and overall financial performance.
Peer comparison
Dec 31, 2023