Enpro Industries (NPO)
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 | 83.89 | 82.29 | 82.03 | 82.81 | 72.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 83.89 | 82.29 | 82.03 | 82.81 | 72.72 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 83.89 + — – —
= 83.89
The cash conversion cycle of Enpro Industries has shown a fluctuating trend over the past five years.
As of December 31, 2020, the company's cash conversion cycle was 72.72 days, indicating that it took approximately 72 days for the company to convert its investments in inventory and accounts receivable into cash inflows from sales.
By December 31, 2021, the cash conversion cycle had increased to 82.81 days, suggesting a longer period for the company to convert its operating assets into cash.
In the subsequent years, the cash conversion cycle remained relatively stable, with values of 82.03 days, 82.29 days, and 83.89 days recorded on December 31, 2022, 2023, and 2024, respectively.
Overall, the increasing trend in the cash conversion cycle indicates a potential inefficiency in managing working capital, as the company is taking longer to convert its investments into cash inflows. This trend may warrant further investigation into the company's inventory management, accounts receivable collection practices, and overall liquidity position to optimize cash flow efficiency.