Teleflex Incorporated (TFX)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	89.82	88.92	73.28	84.32	76.33
Days of sales outstanding (DSO)	days	55.66	54.12	50.75	57.92	60.52
Number of days of payables	days	18.97	19.49	18.14	16.84	16.48
Cash conversion cycle	days	126.51	123.55	105.88	125.39	120.37

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.82 + 55.66 – 18.97
= 126.51

The cash conversion cycle of Teleflex Incorporated, a measure that indicates how long it takes for the company to convert its investments in inventory and other resources into cash inflows, has shown fluctuations over the past five years.

In 2023, the cash conversion cycle increased to 190.23 days compared to 184.32 days in 2022, indicating that the company took longer to convert its investments into cash during that period. This may suggest inefficiencies in managing inventory, receivables, and payables.

In 2021, the cash conversion cycle was relatively lower at 153.95 days, which could imply improved efficiency in managing working capital and converting investments into cash more quickly compared to the other years.

However, in 2020 and 2019, the cash conversion cycle was higher at 180.48 days and 182.44 days, respectively, signifying challenges in optimizing working capital management during those years.

Overall, fluctuations in the cash conversion cycle of Teleflex Incorporated indicate varying levels of working capital efficiency and highlight the importance of continued monitoring and improvement in managing inventory, receivables, and payables to enhance cash flow and overall financial performance.