Enviri Corporation (NVRI)
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 | 34.92 | 19.28 | 19.12 | 17.26 | 42.08 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 34.92 | 19.28 | 19.12 | 17.26 | 42.08 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.92 + — – —
= 34.92
The cash conversion cycle of Enviri Corporation has shown fluctuations over the years based on the provided data. As of December 31, 2020, the company's cash conversion cycle was 42.08 days, indicating a relatively lengthy period for converting investments in inventory and other resources into cash inflows.
However, there was a significant improvement in the efficiency of cash management by December 31, 2021, with the cash conversion cycle decreasing to 17.26 days. This reduction suggests that the company's management of working capital and operations improved, leading to a faster conversion of investments into cash.
The trend continued in the following years, as the cash conversion cycle remained relatively stable at around 19 days by December 31, 2022 and 2023. This stability indicates that the company has been able to maintain its efficient cash conversion practices.
By December 31, 2024, the cash conversion cycle increased to 34.92 days, which could imply a temporary slowdown in cash conversion efficiency, potentially due to changes in the company's operations, market conditions, or other external factors.
Overall, the data shows that Enviri Corporation has made significant improvements in its cash conversion cycle in recent years, with fluctuations observed but generally trending towards more efficient management of working capital and cash flow.