Envista Holdings Corp (NVST)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.53 | 25.14 | 25.16 | 37.43 | 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 | 53.11 | 56.47 | 54.50 | 58.86 | 58.08 | 59.79 | 59.44 | 57.65 | 55.99 | 55.41 | — | — | 47.50 | — | — | — | 59.70 | — |
| Number of days of payables | days | 17.77 | 16.29 | 16.44 | 24.45 | 25.25 | 26.44 | 27.66 | 29.24 | 36.05 | 29.72 | — | — | 30.16 | — | — | — | 33.89 | — |
| Cash conversion cycle | days | 59.86 | 65.32 | 63.21 | 71.83 | 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, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.53 + 53.11 – 17.77
= 59.86
The cash conversion cycle of Envista Holdings Corp has shown varying trends over the period from September 30, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Initially, in September 2020, the cash conversion cycle was at 51.92 days and fluctuated over the next few quarters. By March 2021, the cycle decreased to 41.57 days, indicating an improvement in the efficiency of converting resources into cash. However, there was a slight increase in June 2021 to 44.39 days before decreasing again in September 2021 to 38.55 days.
A notable increase was observed by December 2021, where the cycle extended to 60.16 days, signifying a potential delay in converting investments into cash flows. The trend continued to fluctuate in the following quarters but generally remained elevated, reaching a peak of 78.24 days in June 2023.
The cash conversion cycle decreased gradually by December 31, 2024, where it stood at 59.86 days. Despite the fluctuations, it is essential for Envista Holdings Corp to monitor and manage its cash conversion cycle effectively to ensure a balance between liquidity and operational efficiency.
Peer comparison
Dec 31, 2024