Newmont Goldcorp Corp (NEM)
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 | 65.70 | 109.50 | 73.94 | 84.08 | 89.33 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 65.70 | 109.50 | 73.94 | 84.08 | 89.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.70 + — – —
= 65.70
The cash conversion cycle of Newmont Goldcorp Corp has shown a fluctuating trend over the past five years. Starting at 89.33 days as of December 31, 2020, it decreased to 84.08 days by December 31, 2021, indicating an improvement in managing cash flow efficiency. By December 31, 2022, the cycle further decreased to 73.94 days, signaling a continued positive trend.
However, by December 31, 2023, the cash conversion cycle increased significantly to 109.50 days, suggesting potential challenges in converting sales into cash within the production and sales cycle. The company experienced a notable reversal in cash conversion efficiency during this period.
Fortunately, by December 31, 2024, Newmont Goldcorp Corp managed to lower its cash conversion cycle to 65.70 days, indicating a swift recovery and an improved ability to convert its operational activities into cash efficiently. Overall, the company's cash conversion cycle has demonstrated variability over the past five years, with efforts towards maintaining or improving efficiency visible in the data.