SPX Corp (SPXC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 83.51 | 94.28 | 95.05 | 87.95 | 54.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 83.51 | 94.28 | 95.05 | 87.95 | 54.72 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 83.51 + — – —
= 83.51
The cash conversion cycle for SPX Corp has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 54.72 days, indicating that it took approximately 54.72 days for the company to convert its investments in inventory and accounts receivable into cash receipts from customers.
However, by December 31, 2021, the cash conversion cycle had increased to 87.95 days, suggesting a longer period for the company to convert its resources into cash. This extended cycle may indicate inefficiencies in managing inventory and collecting payments from customers.
By December 31, 2022, the cash conversion cycle further increased to 95.05 days, reaching its peak over the analyzed period. This high level indicates potential challenges in managing working capital effectively and optimizing cash flow processes within the company.
Although there was a slight decrease in the cash conversion cycle by December 31, 2023, to 94.28 days, the metric still remained at a relatively high level, signifying ongoing difficulties in the company's cash conversion efficiency.
Finally, as of December 31, 2024, the cash conversion cycle improved to 83.51 days, indicating some progress in streamlining the company's working capital management. However, it is still higher compared to the initial period.
Overall, the trend in SPX Corp's cash conversion cycle reflects fluctuations and challenges in efficiently converting investments in inventory and accounts receivable into cash receipts, highlighting the importance of continuous monitoring and improvement of working capital management practices.
Peer comparison
Dec 31, 2024