Solventum Corp. (SOLV)
Cash conversion cycle
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.24 | 87.09 | 87.10 | 89.56 | 92.41 | |||
| Days of sales outstanding (DSO) | days | — | — | — | — | — | |||
| Number of days of payables | days | — | — | — | — | — | |||
| Cash conversion cycle | days | 91.24 | 87.09 | 87.10 | 89.56 | 92.41 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.24 + — – —
= 91.24
The cash conversion cycle of Solventum Corp. has shown some fluctuations over the past few quarters. As of March 31, 2024, the cash conversion cycle stands at 91.24 days, indicating that it takes approximately 91 days for the company to convert its investments in inventory and other resources into cash from sales.
Compared to the previous quarters, the cash conversion cycle was slightly higher in the most recent quarter, March 31, 2024, when it was 91.24 days, as opposed to 87.09 days in December 2023 and 87.10 days in September 2023.
The increase in the cash conversion cycle could suggest that Solventum Corp. may be facing challenges in managing its working capital efficiently, potentially leading to delays in collecting receivables or turning over inventory. It is important for the company to monitor and improve its cash conversion cycle to ensure healthy cash flow management and operational efficiency.
Peer comparison
Mar 31, 2024