MaxLinear Inc (MXL)
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 | 198.95 | 118.55 | 124.55 | 121.22 | 134.35 |
| Days of sales outstanding (DSO) | days | 86.52 | 89.83 | 55.71 | 48.97 | 51.43 |
| Number of days of payables | days | 69.10 | 25.57 | 53.20 | 48.76 | 44.97 |
| Cash conversion cycle | days | 216.37 | 182.81 | 127.05 | 121.43 | 140.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 198.95 + 86.52 – 69.10
= 216.37
The cash conversion cycle of MaxLinear Inc has fluctuated over the years. It decreased from 140.81 days on December 31, 2020, to 121.43 days on December 31, 2021, indicating an improvement in the company's efficiency in converting its resources into cash. However, there was a slight increase to 127.05 days on December 31, 2022.
The cycle then significantly jumped to 182.81 days on December 31, 2023, and further increased to 216.37 days on December 31, 2024. These higher numbers suggest that MaxLinear Inc took longer to convert its investments in inventory into cash during these years, which may indicate inefficiencies in managing working capital or challenges in the company's operations or market conditions.
Overall, the trend of the cash conversion cycle for MaxLinear Inc demonstrates variability over the years, with both improvements and deteriorations in the efficiency of its cash conversion processes. Monitoring and managing the cash conversion cycle is crucial for the company to optimize its working capital and maintain liquidity.
Peer comparison
Dec 31, 2024