Teledyne Technologies Incorporated (TDY)

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	103.16	104.80	103.92	99.11	66.53
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	103.16	104.80	103.92	99.11	66.53

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 103.16 + — – —
= 103.16

The cash conversion cycle (CCC) of Teledyne Technologies Incorporated has shown a fluctuating trend over the past five years. In December 2020, the CCC was at 66.53 days, indicating that the company took approximately 66.53 days to convert its investments in inventory and other resources back into cash.

However, by December 2021, the CCC increased significantly to 99.11 days, reflecting a longer period for Teledyne Technologies to complete its operating cycle and recover cash. This could imply potential issues with managing inventory levels or extending credit terms to customers.

In the following years, the CCC continued to rise, reaching 103.92 days in December 2022, 104.80 days in December 2023, and then slightly decreasing to 103.16 days by December 2024. These prolonged cash conversion cycles suggest that Teledyne Technologies may be facing challenges in efficiently managing its working capital, which could impact its liquidity and cash flow position.

Overall, the trend of increasing CCC over the years indicates that Teledyne Technologies may need to focus on improving inventory management, optimizing accounts receivable collection, and streamlining accounts payable processes to shorten the cash conversion cycle and enhance its cash flow management efficiency.