Newmont Goldcorp Corp (NEM)
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 | 6.32 | 5.31 | 7.42 | 9.68 | 92.47 |
| Days of sales outstanding (DSO) | days | 38.49 | 11.31 | 10.11 | 14.52 | 14.07 |
| Number of days of payables | days | 37.90 | 27.30 | 29.12 | 32.26 | 263.72 |
| Cash conversion cycle | days | 6.91 | -10.68 | -11.60 | -8.05 | -157.17 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.32 + 38.49 – 37.90
= 6.91
The cash conversion cycle of Newmont Corp has shown variability over the past five years. In 2023, the cash conversion cycle increased significantly to 76.22 days, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash. This may raise concerns about the company's efficiency in managing its working capital.
In 2022, the cash conversion cycle was relatively low at 30.74 days, suggesting that the company was able to efficiently convert its investments into cash within a shorter period. However, there was a notable increase in the cash conversion cycle in 2021 to 37.73 days, followed by a further increase in 2020 to 48.47 days.
In 2019, the cash conversion cycle was 47.35 days, similar to 2020, indicating a stable performance in converting assets into cash during that period.
Overall, Newmont Corp's cash conversion cycle has varied across the years, highlighting the importance of monitoring and managing working capital effectively to optimize the company's cash flow and operational efficiency.