SPX Corp (SPXC)
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 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.34 | 91.93 | 90.85 | 96.31 | 94.28 | 100.68 | 107.83 | 97.87 | 94.33 | 107.83 | 101.01 | 99.41 | 78.68 | 63.85 | 55.52 | 56.24 | 54.59 | 61.13 | 61.71 | 59.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 81.34 | 91.93 | 90.85 | 96.31 | 94.28 | 100.68 | 107.83 | 97.87 | 94.33 | 107.83 | 101.01 | 99.41 | 78.68 | 63.85 | 55.52 | 56.24 | 54.59 | 61.13 | 61.71 | 59.23 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.34 + — – —
= 81.34
The cash conversion cycle of SPX Corp has fluctuated over the past few years, indicating changes in the company's efficiency in managing its cash flow. The cycle measures the time it takes for the company to convert its investments in inventory into cash received from sales, effectively illustrating how quickly it can generate cash from its operations.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 54.59 days to a high of 107.83 days. The trend in the cash conversion cycle shows some volatility but generally an increasing trend over time. This suggests that the company may be taking longer to convert its investments in inventory into cash, which could potentially be a concern if not managed effectively.
A longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers. It could also suggest that the company is experiencing difficulties in generating sales or that there are delays in the cash collection process.
Overall, a detailed analysis of SPX Corp's cash conversion cycle reveals the need for further investigation into the specific factors causing the fluctuations and longer cycles. This analysis can help management identify areas for improvement and implement strategies to optimize cash flow management and enhance overall operational efficiency.
Peer comparison
Dec 31, 2024