National Presto Industries Inc (NPK)
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 | 327.68 | 254.16 | 208.37 | 180.21 | 184.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 327.68 | 254.16 | 208.37 | 180.21 | 184.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 327.68 + — – —
= 327.68
The cash conversion cycle of National Presto Industries Inc has shown a fluctuating trend over the years. Starting at 184.73 days at the end of December 2020, it decreased slightly to 180.21 days by the end of December 2021 before increasing notably to 208.37 days by the end of December 2022. The cycle then saw a significant jump to 254.16 days by the end of December 2023 and further increased to 327.68 days by the end of December 2024.
These fluctuations indicate potential challenges in managing the company's cash flow and working capital efficiently. A longer cash conversion cycle can tie up cash in operations, impacting liquidity and potentially increasing financing costs. It is crucial for National Presto Industries Inc to closely monitor and actively manage its cash conversion cycle to optimize operational efficiency and financial performance over time.
Peer comparison
Dec 31, 2024