Envista Holdings Corp (NVST)
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 | 24.25 | 83.89 | 100.33 | 88.96 | 90.17 |
| Days of sales outstanding (DSO) | days | 52.83 | 57.95 | 55.91 | 48.29 | 68.30 |
| Number of days of payables | days | 17.57 | 58.19 | 76.15 | 62.65 | 98.15 |
| Cash conversion cycle | days | 59.52 | 83.66 | 80.09 | 74.59 | 60.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.25 + 52.83 – 17.57
= 59.52
The cash conversion cycle of Envista Holdings Corp has experienced fluctuations over the years. In December 2020, the company had a cash conversion cycle of 60.33 days, indicating that it takes about two months to convert its investments in inventory and accounts receivable into cash.
By December 2021, the cash conversion cycle increased to 74.59 days, which suggests that the company took longer to convert its resources into cash. This trend continued in December 2022 and December 2023, with the cash conversion cycle reaching 80.09 days and 83.66 days, respectively.
However, by December 2024, Envista Holdings Corp was able to improve its cash conversion cycle significantly to 59.52 days, indicating that the company became more efficient in managing its working capital and converting investments into cash in less time.
Overall, while there were fluctuations in the cash conversion cycle over the years, the company demonstrated improvement in its efficiency by decreasing the time it takes to convert its investments into cash by the end of the period analyzed. This shows a positive trend in working capital management for Envista Holdings Corp.
Peer comparison
Dec 31, 2024