PPG Industries Inc (PPG)
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 | 72.83 | 72.56 | 74.74 | 77.04 | 81.43 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 72.83 | 72.56 | 74.74 | 77.04 | 81.43 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.83 + — – —
= 72.83
Based on the data provided, PPG Industries Inc has shown an improving trend in its cash conversion cycle over the years. The company's cash conversion cycle decreased steadily from 81.43 days as of December 31, 2020, to 77.04 days as of December 31, 2021, further declining to 74.74 days as of December 31, 2022. By the end of December 31, 2023, the cash conversion cycle decreased to 72.56 days, indicating efficient management of working capital.
However, there was a slight increase in the cash conversion cycle to 72.83 days as of December 31, 2024. Despite this small uptick, the overall trend suggests that the company has been successful in reducing the time it takes to convert its investments in inventory and other resources into cash inflows.
A lower cash conversion cycle implies that the company is efficient in managing its operations and working capital, which is crucial for maintaining liquidity and optimizing cash flow. PPG Industries Inc's continuous efforts to shorten its cash conversion cycle indicate effective management practices in terms of inventory, accounts receivable, and accounts payable.
Peer comparison
Dec 31, 2024