NXP Semiconductors NV (NXPI)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 136.10 114.35 86.87 85.89 102.16
Days of sales outstanding (DSO) days 24.58 26.54 30.45 32.42 27.43
Number of days of payables days 74.24 76.04 91.47 82.64 80.90
Cash conversion cycle days 86.44 64.85 25.85 35.68 48.68

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 136.10 + 24.58 – 74.24
= 86.44

The cash conversion cycle of NXP Semiconductors NV has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle increased significantly to 86.44 days from 37.12 days in 2022. This suggests that NXP Semiconductors NV took longer to convert its investments in inventory and accounts receivable into cash during the year.

Comparing 2023 to earlier years, the company's cash conversion cycle was higher than in 2021 (25.85 days) and 2020 (35.68 days) but lower than in 2019 (48.68 days). This indicates that in 2023, NXP Semiconductors NV faced challenges in managing its working capital efficiently compared to the previous year but was more effective in converting its assets into cash compared to 2019.

Overall, the trend in NXP Semiconductors NV's cash conversion cycle suggests the need for closer monitoring of working capital management to ensure efficient utilization of resources and timely conversion of assets into cash.


Peer comparison

Dec 31, 2023


See also:

NXP Semiconductors NV Cash Conversion Cycle