Rogers Corporation (ROG)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	65.64	61.19	64.32	65.64	68.87	69.96	70.97	65.52	60.09	54.39	50.78	50.40	48.95	54.13	62.64	61.03	66.20	72.58	75.51	83.18
Days of sales outstanding (DSO)	days	57.99	74.28	73.26	66.91	67.49	61.03	66.60	66.47	63.76	65.58	65.89	63.56	61.64	64.94	58.66	61.77	49.91	54.75	61.56	64.86
Number of days of payables	days	21.51	18.25	19.42	19.33	21.64	23.05	31.87	32.26	29.13	25.22	24.51	24.72	17.21	17.70	17.88	19.01	16.45	20.32	23.60	27.14
Cash conversion cycle	days	102.12	117.22	118.16	113.21	114.73	107.93	105.71	99.73	94.72	94.74	92.15	89.24	93.38	101.36	103.42	103.80	99.65	107.01	113.48	120.90

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.64 + 57.99 – 21.51
= 102.12

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that a company is efficiently managing its working capital.

Looking at the data provided for Rogers Corp., we can see that the company's cash conversion cycle has varied over the past eight quarters. In Q1 2022 and Q2 2022, the company had the shortest cash conversion cycles of 114.16 days and 122.68 days, respectively, indicating efficient working capital management during those periods.

However, the cash conversion cycle increased in subsequent quarters, peaking at 141.41 days in Q2 2023. This suggests that Rogers Corp. may have faced challenges in managing its working capital efficiently during that period, potentially due to an increase in inventory levels or slower collection of accounts receivable.

Overall, it is important for Rogers Corp. to monitor and optimize its cash conversion cycle to ensure efficient utilization of resources and consistent cash flows from operations.