Owens Corning Inc (OC)
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 | 72.35 | 100.01 | 105.76 | 82.55 | 80.23 | 83.26 | 85.71 | 88.27 | 88.11 | 72.76 | 71.37 | 67.89 | 66.57 | 61.27 | 59.26 | 60.83 | 63.07 | 60.87 | 65.39 | 70.43 |
| Days of sales outstanding (DSO) | days | 41.71 | 55.55 | 62.61 | 53.79 | 37.53 | 49.87 | 53.92 | 52.76 | 36.47 | 50.24 | 54.13 | 57.89 | 40.98 | 51.00 | 56.95 | 58.81 | 48.41 | 54.36 | 52.92 | 47.90 |
| Number of days of payables | days | 65.19 | 87.79 | 94.15 | 80.63 | 81.44 | 78.46 | 79.92 | 81.88 | 88.84 | 72.65 | 75.53 | 78.60 | 67.62 | — | — | — | 64.55 | — | — | — |
| Cash conversion cycle | days | 48.87 | 67.77 | 74.22 | 55.71 | 36.32 | 54.67 | 59.71 | 59.15 | 35.74 | 50.35 | 49.98 | 47.18 | 39.93 | 112.27 | 116.22 | 119.64 | 46.93 | 115.23 | 118.31 | 118.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.35 + 41.71 – 65.19
= 48.87
The cash conversion cycle for Owens Corning Inc shows fluctuations over the periods analyzed. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
Initially, in March 2020, the cash conversion cycle stood at 118.33 days, indicating a long cycle. It then improved slightly in subsequent periods, with a notable drop to 46.93 days by December 2020, suggesting a more efficient conversion process. However, this improvement was short-lived as the cycle increased again in the following periods.
By December 2021, the cash conversion cycle was at its lowest point of 39.93 days, reflecting a significant enhancement in the company's efficiency in managing its working capital. This positive trend continued into the first half of 2022, with figures remaining relatively low compared to previous periods.
From mid-2022 to late 2024, the cash conversion cycle showed some variability, hovering around the 50-day mark. Although there were fluctuations, the cycle generally remained at a lower level compared to the initial periods, indicating ongoing efforts by Owens Corning Inc to streamline its operations and improve its cash conversion efficiency.
Overall, the analysis of the cash conversion cycle for Owens Corning Inc suggests a mix of challenges and improvements in managing working capital and converting resources into cash. The company appears to have made progress in optimizing its cash conversion cycle, as evidenced by the decreasing trend observed in some periods, but continued focus may be required to sustain and further enhance this efficiency.