Teleflex Incorporated (TFX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 163.07 | 175.59 | 175.30 | 172.35 | 172.17 | 172.71 | 176.59 | 174.32 | 167.34 | 152.58 | 147.18 | 141.68 | 138.37 | 141.95 | 145.27 | 155.22 | 154.52 | 164.51 | 164.67 | 157.64 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 163.07 | 175.59 | 175.30 | 172.35 | 172.17 | 172.71 | 176.59 | 174.32 | 167.34 | 152.58 | 147.18 | 141.68 | 138.37 | 141.95 | 145.27 | 155.22 | 154.52 | 164.51 | 164.67 | 157.64 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 163.07 + — – —
= 163.07
The cash conversion cycle of Teleflex Incorporated has shown fluctuations over the analyzed periods. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the period from March 31, 2020, to September 30, 2021, the cash conversion cycle generally decreased from 157.64 days to 141.95 days, indicating an improvement in efficiency in managing cash flows. However, from September 30, 2021, to December 31, 2024, the cash conversion cycle saw fluctuations within a range of 138.37 days to 176.59 days, suggesting possible challenges in managing working capital efficiently.
The company experienced its lowest cash conversion cycle on December 31, 2021, at 138.37 days, indicating efficient management in converting investments into cash. However, by June 30, 2023, the cash conversion cycle increased to 176.59 days, reflecting a slower cash conversion process, possibly due to increased inventory levels or longer payment terms to suppliers.
Overall, Teleflex Incorporated should continue monitoring and analyzing its cash conversion cycle to identify areas for improvement in working capital management, inventory turnover, and accounts receivable and payable cycles to optimize cash flow efficiency.
Peer comparison
Dec 31, 2024