PPG Industries Inc (PPG)
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 | 70.55 | 77.40 | 77.98 | 79.23 | 72.25 | 74.67 | 83.87 | 86.29 | 74.74 | 78.82 | 81.75 | 82.80 | 77.04 | 84.33 | 90.01 | 86.24 | 81.43 | 78.77 | 78.79 | 79.94 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 70.55 | 77.40 | 77.98 | 79.23 | 72.25 | 74.67 | 83.87 | 86.29 | 74.74 | 78.82 | 81.75 | 82.80 | 77.04 | 84.33 | 90.01 | 86.24 | 81.43 | 78.77 | 78.79 | 79.94 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.55 + — – —
= 70.55
The cash conversion cycle of PPG Industries Inc has shown fluctuations over the period from March 2020 to December 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.
The company's cash conversion cycle ranged from a high of 90.01 days in June 2021 to a low of 70.55 days in December 2024, indicating varying efficiency in managing its working capital over time. A shorter cash conversion cycle generally suggests better liquidity and efficiency in operations, as it means the company is able to convert its resources into cash more quickly.
It is notable that the cash conversion cycle decreased towards the end of the period, reaching its lowest point of 70.55 days in December 2024. This improvement may signify enhanced working capital management or faster inventory turnover, potentially leading to increased cash generation for the company.
Overall, monitoring the cash conversion cycle provides insights into PPG Industries Inc's ability to efficiently manage its working capital and generate cash flows, which are crucial for sustaining and growing its operations.
Peer comparison
Dec 31, 2024