Ingevity Corp (NGVT)

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	69.90	91.55	80.63	73.03	75.33
Days of sales outstanding (DSO)	days	1.08	1.11	0.16	47.10	45.55
Number of days of payables	days	35.86	47.77	42.05	40.26	35.13
Cash conversion cycle	days	35.12	44.90	38.74	79.87	85.75

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.90 + 1.08 – 35.86
= 35.12

The cash conversion cycle of Ingevity Corp has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 84.25 days compared to 102.43 days in 2022. This indicates that Ingevity Corp was able to manage its working capital more efficiently in 2023, resulting in a shorter cash conversion cycle.

Despite the improvement in 2023, the company's cash conversion cycle in 2021 and 2020 was relatively higher at 90.35 days and 85.66 days, respectively. This suggests that Ingevity Corp may have faced challenges in managing its cash flow and working capital during those years.

In 2019, the cash conversion cycle was 93.39 days, which was slightly higher compared to 2023. Overall, the trend in the cash conversion cycle of Ingevity Corp shows some variability but with a recent improvement in 2023, indicating the company's efforts in enhancing its operational efficiency and cash management.