PTC Inc (PTC)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 25.49 |
| Days of sales outstanding (DSO) | days | 136.79 | 150.31 | 123.97 | 112.65 | 109.46 |
| Number of days of payables | days | 6.89 | 12.57 | 12.67 | 10.67 | 9.15 |
| Cash conversion cycle | days | 129.90 | 137.75 | 111.30 | 101.98 | 125.81 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 136.79 – 6.89
= 129.90
PTC Inc's cash conversion cycle has exhibited fluctuations over the past five years. In 2024, the cash conversion cycle decreased to 129.90 days from 137.75 days in 2023, indicating an improvement in the company's efficiency in converting its investments in inventory and receivables into cash. This improvement may suggest more effective management of working capital or a faster sales turnover process.
Comparing 2024 to earlier years, the cash conversion cycle was longer than in 2022, when it was 111.30 days, but shorter than in 2021 and 2020. The longer cash conversion cycle in 2024 compared to 2022 suggests that PTC Inc may have faced challenges in managing working capital efficiency during the year.
Overall, PTC Inc should continue monitoring its cash conversion cycle to ensure optimal management of its working capital components and strive for a shorter cycle to improve liquidity and operational efficiency.
Peer comparison
Sep 30, 2024