Tidewater Inc (TDW)
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 | 13.33 | 15.73 | 21.70 | 12.15 | 14.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 13.33 | 15.73 | 21.70 | 12.15 | 14.90 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 13.33 + — – —
= 13.33
To analyze Tidewater Inc's cash conversion cycle over the past five years, we observe the following trends:
1. In 2020, the cash conversion cycle was 14.90 days, indicating that the company took approximately 14.90 days to convert its investments in inventory and receivables into cash.
2. By the end of 2021, the cash conversion cycle decreased to 12.15 days, suggesting an improvement in the company's efficiency in managing its working capital.
3. However, in 2022, there was a significant increase in the cash conversion cycle to 21.70 days, which could indicate challenges in managing inventory, receivables, and payables effectively.
4. The cash conversion cycle decreased in 2023 to 15.73 days, showing some improvement in the company's working capital management compared to the previous year.
5. By the end of 2024, the cash conversion cycle further improved to 13.33 days, signaling that the company was able to convert its investments in working capital into cash more efficiently.
Overall, Tidewater Inc has shown fluctuations in its cash conversion cycle over the past five years, with periods of both improvement and decline in efficiency in managing its working capital. Continued monitoring and optimization of working capital processes may be necessary to maintain a healthy cash conversion cycle in the future.
Peer comparison
Dec 31, 2024