NXP Semiconductors NV (NXPI)
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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 153.29 | 142.43 | 135.62 | 131.56 | 134.57 | 137.98 | 135.64 | 127.00 | 114.35 | 103.07 | 98.84 | 93.04 | 86.87 | 87.68 | 85.18 | 84.43 | 85.89 | 91.38 | 107.95 | 104.79 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 153.29 | 142.43 | 135.62 | 131.56 | 134.57 | 137.98 | 135.64 | 127.00 | 114.35 | 103.07 | 98.84 | 93.04 | 86.87 | 87.68 | 85.18 | 84.43 | 85.89 | 91.38 | 107.95 | 104.79 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 153.29 + — – —
= 153.29
The cash conversion cycle of NXP Semiconductors NV has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to September 2021, the cash conversion cycle generally decreased, indicating that NXP Semiconductors NV was managing its cash flow efficiently by reducing the time it takes to convert investments into cash. However, from September 2021 onwards, the cash conversion cycle started increasing, suggesting that the company may be facing challenges in managing its working capital effectively.
The increasing trend seen from September 2021 to December 2024 may imply that NXP Semiconductors NV is taking longer to convert its investments into cash, which could potentially lead to liquidity issues if not managed properly.
Overall, monitoring the cash conversion cycle is crucial for assessing NXP Semiconductors NV's operational efficiency and cash flow management. Investors and stakeholders should pay attention to any substantial changes in this metric to ensure the company's financial health and liquidity position are being adequately maintained.
Peer comparison
Dec 31, 2024
See also:
NXP Semiconductors NV Cash Conversion Cycle (Quarterly Data)