Tootsie Roll Industries Inc (TR)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.39 | 59.41 | 80.48 | 65.83 | 35.82 | 58.20 | 68.51 | 46.58 | 27.76 | 55.40 | 71.45 | 58.97 | 39.68 | 62.40 | 87.16 | 68.24 | 43.55 | 72.69 | 94.71 | 67.09 |
| Days of sales outstanding (DSO) | days | 26.47 | 38.51 | 25.11 | 30.60 | 31.06 | 45.08 | 25.61 | 31.15 | 35.08 | 72.58 | 34.69 | 36.59 | 43.55 | 71.23 | 29.66 | 33.28 | 41.90 | 62.08 | 25.93 | 30.90 |
| Number of days of payables | days | 8.65 | 12.53 | 12.74 | 13.08 | 15.99 | 19.97 | 14.65 | 14.91 | 10.85 | 18.90 | 16.44 | 12.33 | 11.52 | 13.92 | 11.89 | 15.23 | 12.71 | 18.60 | 14.69 | 13.81 |
| Cash conversion cycle | days | 50.22 | 85.39 | 92.85 | 83.35 | 50.89 | 83.31 | 79.47 | 62.82 | 52.00 | 109.07 | 89.69 | 83.23 | 71.72 | 119.71 | 104.93 | 86.29 | 72.74 | 116.17 | 105.95 | 84.17 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.39 + 26.47 – 8.65
= 50.22
Tootsie Roll Industries, Inc.'s cash conversion cycle has shown varying trends over the past eight quarters. In Q4 2023, the cash conversion cycle was 87.05 days, indicating that it took the company approximately 87 days to convert its investments in raw materials into cash from sales. This represents an improvement compared to Q3 2023, where the cycle was 102.04 days, signaling a more efficient management of working capital.
However, looking further back, the cash conversion cycle was 117.30 days in Q2 2023 and 100.02 days in Q1 2023, which suggests a period of increased operational inefficiency during that time. Comparing these figures to the same quarters in the previous year, there has been a general increase in the cash conversion cycle, with Q4 2022 at 80.82 days, Q3 2022 at 96.15 days, Q2 2022 at 97.54 days, and Q1 2022 at 75.86 days.
This overall trend indicates that Tootsie Roll Industries, Inc. has experienced fluctuations in its efficiency in managing its working capital and converting investments into cash. Further analysis of the company's operational and financial activities could provide insights into the factors influencing these changes in the cash conversion cycle.
Peer comparison
Dec 31, 2023