Envista Holdings Corp (NVST)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.40 | 43.71 | 46.47 | 48.09 | 47.49 | 45.57 | 45.30 | 44.95 | 42.82 | 38.55 | 44.39 | 41.57 | 31.13 | 51.92 | |||
| Days of sales outstanding (DSO) | days | 58.08 | 59.79 | 59.44 | 57.65 | 55.99 | 55.41 | — | — | 47.50 | — | — | — | 59.70 | — | |||
| Number of days of payables | days | 25.25 | 26.44 | 27.66 | 29.24 | 36.05 | 29.72 | — | — | 30.16 | — | — | — | 33.89 | — | |||
| Cash conversion cycle | days | 69.23 | 77.07 | 78.24 | 76.49 | 67.44 | 71.25 | 45.30 | 44.95 | 60.16 | 38.55 | 44.39 | 41.57 | 56.94 | 51.92 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.40 + 58.08 – 25.25
= 69.23
The cash conversion cycle of Envista Holdings Corp has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 83.66 days compared to 95.18 days in Q3 2023. This suggests a more efficient management of cash, accounts receivable, and inventory during the period.
However, the cash conversion cycle in Q4 2023 was slightly higher compared to the same period in the previous year (Q4 2022) where it was 80.09 days. This indicates that the company took slightly longer to convert its investments in inventory and accounts receivable into cash in Q4 2023.
Overall, the trend in the cash conversion cycle over the past eight quarters shows some variability, with fluctuations in efficiency in managing cash flow, accounts receivable, and inventory. It is important for Envista Holdings Corp to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable financial performance.
Peer comparison
Dec 31, 2023