Solventum Corp. (SOLV)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.26 | 94.42 | 89.46 | 91.24 | 87.09 | 87.10 | 89.56 | 92.41 | 92.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 96.26 | 94.42 | 89.46 | 91.24 | 87.09 | 87.10 | 89.56 | 92.41 | 92.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.26 + — – —
= 96.26
Solventum Corp.'s cash conversion cycle shows a trend of fluctuations over the analyzed period. The cycle started at 92.76 days on December 31, 2022, slightly decreased to 92.41 days by March 31, 2023. Subsequently, there was a further decline to 89.56 days by June 30, 2023, indicating an improvement in the efficiency of the company's cash management.
However, from September 30, 2023, to December 31, 2024, the cash conversion cycle showed an increasing trend, reaching 96.26 days by the end of December 31, 2024. This indicates that Solventum Corp. took longer to convert its investments in inventory and accounts receivable into cash during this period, possibly facing challenges in managing working capital efficiently.
Overall, the company's cash conversion cycle has shown some variability, with fluctuations in the efficiency of cash management practices. Solventum Corp. may need to focus on optimizing its inventory and accounts receivable processes to improve its cash conversion cycle in the future.
Peer comparison
Dec 31, 2024