TE Connectivity Ltd (TEL)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.90 | 71.13 | 75.42 | 76.70 | 63.73 |
| Days of sales outstanding (DSO) | days | 70.37 | 67.88 | 64.49 | 71.89 | 71.56 |
| Number of days of payables | days | 50.74 | 43.56 | 44.90 | 58.37 | 41.70 |
| Cash conversion cycle | days | 93.54 | 95.44 | 95.02 | 90.21 | 93.59 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 73.90 + 70.37 – 50.74
= 93.54
The cash conversion cycle of TE Connectivity Ltd has exhibited some fluctuations over the past five years. In the fiscal year ending September 30, 2024, the company's cash conversion cycle improved to 93.54 days from 95.44 days in the previous year. This indicates that TE Connectivity Ltd was able to efficiently convert its investments in inventory into cash within a shorter time frame in 2024.
Comparing the most recent data with that of five years ago, the cash conversion cycle was slightly lower in 2024 (93.54 days) than in 2020 (93.59 days), showing a minor improvement over the period. However, it is crucial to note that there were fluctuations in between these years, with the cycle reaching its peak in 2023 at 95.44 days.
Overall, the trend in TE Connectivity Ltd's cash conversion cycle suggests that the company has been working on optimizing its working capital management efficiency over the past five years. The slight decrease in the cycle in 2024 indicates potential improvements in inventory management, accounts receivable collection, and accounts payable payment processes.
Peer comparison
Sep 30, 2024