Pentair PLC (PNR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.55 | 74.18 | 80.80 | 67.38 | 61.45 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 30.17 | 30.53 | 36.31 | 46.17 | 35.86 |
| Cash conversion cycle | days | 37.39 | 43.65 | 44.49 | 21.21 | 25.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.55 + — – 30.17
= 37.39
The cash conversion cycle for Pentair PLC has shown variability over the years.
- As of December 31, 2020, the cash conversion cycle was 25.59 days.
- By December 31, 2021, it decreased to 21.21 days, indicating an improvement in the company's efficiency in converting its investments in inventory and accounts receivable into cash.
- However, there was a significant increase in the cash conversion cycle to 44.49 days by December 31, 2022, and it remained relatively high at 43.65 days by December 31, 2023.
- The cash conversion cycle then decreased to 37.39 days by December 31, 2024, but it is still higher compared to the levels in 2020 and 2021.
Overall, the fluctuations in the cash conversion cycle suggest varying efficiency in managing inventory, accounts receivable, and accounts payable. Further analysis and investigation into the underlying reasons for these changes may provide insights into Pentair PLC's working capital management and operational performance.
Peer comparison
Dec 31, 2024