Rogers Corporation (ROG)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.25 | 67.79 | 59.03 | 48.03 | 60.24 |
| Days of sales outstanding (DSO) | days | 57.90 | 67.49 | 63.72 | 61.61 | 50.12 |
| Number of days of payables | days | 21.05 | 21.30 | 28.61 | 16.89 | 14.97 |
| Cash conversion cycle | days | 101.10 | 113.99 | 94.13 | 92.76 | 95.39 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.25 + 57.90 – 21.05
= 101.10
The cash conversion cycle of Rogers Corp. has fluctuated over the past five years, ranging from 108.02 days in 2021 to 138.35 days in 2022. A lower cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable back into cash more quickly.
In 2023, the cash conversion cycle improved compared to the prior year, decreasing to 129.42 days. This could suggest that Rogers Corp. managed its inventory and accounts receivable more efficiently, leading to a quicker cash conversion process.
Overall, monitoring the cash conversion cycle is crucial as it provides insights into how effectively the company manages its working capital and the efficiency of its operations in turning inventory and receivables into cash. Investors and stakeholders can use this metric to assess the company's liquidity and operational performance over time.
Peer comparison
Dec 31, 2023