SPX Corp (SPXC)
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 | 71.33 | 103.23 | 112.74 | 105.16 | 91.91 | 100.69 | 93.50 | 92.49 | 82.84 | 50.07 | 44.90 | 46.11 | 39.90 | 46.62 | 47.13 | 45.20 | 39.93 | 40.65 | 39.73 | 38.44 |
| Days of sales outstanding (DSO) | days | 59.66 | 65.98 | 63.52 | — | 65.83 | — | — | — | 69.47 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 30.60 | 46.64 | 49.29 | 47.50 | 46.90 | 47.54 | 46.08 | 46.52 | 52.20 | 33.02 | 24.71 | 36.68 | 26.28 | 34.97 | 35.79 | 38.20 | 36.39 | 34.15 | 34.72 | 36.08 |
| Cash conversion cycle | days | 100.39 | 122.57 | 126.96 | 57.67 | 110.85 | 53.16 | 47.42 | 45.97 | 100.11 | 17.05 | 20.18 | 9.43 | 13.62 | 11.65 | 11.34 | 6.99 | 3.53 | 6.50 | 5.01 | 2.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 71.33 + 59.66 – 30.60
= 100.39
The cash conversion cycle of SPX Corp has shown some fluctuations over the past few quarters. The cycle represents the time it takes for the company to convert its investment in inventory and other inputs into cash flows from sales.
In the most recent quarter, ending December 31, 2023, the cash conversion cycle was 100.39 days, indicating that it took SPX Corp approximately 100 days to convert its resources invested in operations into cash receipts. This was an increase from the previous quarter, where the cycle was 122.57 days.
Looking back at historical data, the cash conversion cycle has seen variability, with some quarters showing shorter cycles (such as March 31, 2019, at 3.53 days) and others exhibiting longer cycles (such as June 30, 2023, at 126.96 days).
A longer cash conversion cycle may suggest inefficiencies in managing working capital or challenges in converting inventory into sales. On the other hand, a shorter cycle could indicate effective working capital management and efficient operations.
Overall, monitoring the cash conversion cycle can help evaluate the efficiency of SPX Corp's operations and working capital management over time, providing insights into the company's liquidity and financial performance.
Peer comparison
Dec 31, 2023