Teleflex Incorporated (TFX)
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 | 162.90 | 172.17 | 167.59 | 138.37 | 154.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 162.90 | 172.17 | 167.59 | 138.37 | 154.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 162.90 + — – —
= 162.90
Teleflex Incorporated's cash conversion cycle has fluctuated over the past five years. In 2020, the company had a cash conversion cycle of 154.52 days, which improved to 138.37 days in 2021. However, in 2022, the cash conversion cycle increased significantly to 167.59 days, and in 2023 it further extended to 172.17 days. Despite this, the company managed to decrease the cash conversion cycle to 162.90 days by the end of 2024.
Overall, Teleflex's cash conversion cycle experienced volatility, indicating potential challenges in managing its working capital efficiently. A longer cash conversion cycle can tie up the company's funds for a longer period, impacting liquidity and potentially increasing financing costs. It's essential for Teleflex to focus on streamlining its inventory management, accounts receivable collection, and accounts payable payment processes to shorten the cash conversion cycle and improve its overall financial performance.
Peer comparison
Dec 31, 2024