Rockwell Automation Inc (ROK)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 65.05 | 64.46 | 65.81 | 69.60 | 67.60 | 74.22 | 70.88 | 70.59 | 59.31 | 57.11 | 54.52 | 52.06 | 50.09 | 48.24 | 47.39 | 45.40 | 40.68 | 45.95 | 42.15 | 41.91 |
| Days of sales outstanding (DSO) | days | 80.38 | 78.66 | 80.09 | 77.31 | 85.96 | 93.40 | 88.76 | 85.12 | 83.10 | 84.60 | 79.27 | 75.24 | 75.02 | 78.07 | 85.41 | 82.02 | 72.92 | 68.42 | 71.07 | 71.14 |
| Number of days of payables | days | 43.28 | 40.12 | 42.93 | 44.15 | 55.34 | 52.19 | 52.95 | 57.47 | 57.84 | 57.11 | 54.57 | 51.01 | 55.84 | 58.47 | 56.09 | 51.10 | 47.91 | 45.42 | 49.76 | 47.47 |
| Cash conversion cycle | days | 102.14 | 103.00 | 102.97 | 102.77 | 98.22 | 115.44 | 106.69 | 98.23 | 84.58 | 84.59 | 79.22 | 76.30 | 69.26 | 67.83 | 76.70 | 76.31 | 65.69 | 68.95 | 63.46 | 65.58 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.05 + 80.38 – 43.28
= 102.14
The cash conversion cycle of Rockwell Automation Inc has fluctuated over the past several quarters. The company's cash conversion cycle, which represents the time it takes to convert inventory into cash received from customers, stood at 102.14 days as of September 30, 2024. This indicates that, on average, it takes the company 102.14 days to turn its investments in inventory and other resources into cash inflows from sales.
Looking at the trend, the cash conversion cycle has shown some variability over the quarters analyzed. There was a noticeable increase in the cycle in the June 2023 quarter to 115.44 days but has since trended downwards. The most recent data indicates an improvement in the cash conversion cycle, dropping to 102.14 days from the previous quarter.
A high cash conversion cycle may indicate inefficiencies in inventory management, collection from customers, or payment to suppliers, slowing down the cash generation process. On the other hand, a low cycle may suggest effective management of working capital, leading to quicker cash inflows and better liquidity.
It would be important for Rockwell Automation Inc to consistently monitor and manage its cash conversion cycle to ensure optimal efficiency in its operations, maximize cash flow, and maintain financial health.
Peer comparison
Sep 30, 2024