Sensata Technologies Holding NV (ST)
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 | 77.99 | 83.20 | 89.46 | 92.29 | 91.98 | 90.27 | 86.95 | 88.20 | 86.79 | 92.81 | 92.46 | 91.35 | 84.45 | 79.50 | 75.53 | 78.15 | 77.68 | 77.43 | 85.36 | 83.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 77.99 | 83.20 | 89.46 | 92.29 | 91.98 | 90.27 | 86.95 | 88.20 | 86.79 | 92.81 | 92.46 | 91.35 | 84.45 | 79.50 | 75.53 | 78.15 | 77.68 | 77.43 | 85.36 | 83.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.99 + — – —
= 77.99
The cash conversion cycle of Sensata Technologies Holding NV has shown fluctuating trends over the past few years, ranging from 75.53 days to 92.81 days. The cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The company's cash conversion cycle has been relatively stable around 80 to 90 days, with some quarters showing deviations from this range. A lower cash conversion cycle implies that the company is able to efficiently manage its working capital and turn its investments into cash quickly, which can be a positive sign of operational efficiency.
On the other hand, periods where the cash conversion cycle increases may indicate challenges in managing inventory, accounts receivable, and accounts payable effectively, leading to cash flow constraints. It could also suggest delays in converting sales into cash, impacting the company's liquidity and working capital management.
Overall, Sensata Technologies Holding NV should closely monitor its cash conversion cycle and work towards optimizing it to ensure efficient cash flow management and strengthen its financial position.
Peer comparison
Dec 31, 2024