Trimble Inc (TRMB)
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 | 59.59 | 54.81 | 93.53 | 81.63 | 79.06 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 59.59 | 54.81 | 93.53 | 81.63 | 79.06 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.59 + — – —
= 59.59
Trimble Inc's cash conversion cycle has fluctuated over the years. In 2020, the company's cash conversion cycle was 79.06 days, indicating that it took approximately 79 days for Trimble to convert its investments in inventory and accounts receivable into cash.
By the end of 2021, the cash conversion cycle increased to 81.63 days, showing a slight lengthening in the time it took for the company to convert its resources into cash. This trend continued in 2022, with a cash conversion cycle of 93.53 days, suggesting a longer cash conversion period, possibly due to operational inefficiencies or changes in inventory management.
However, there was a significant improvement in 2023, with the cash conversion cycle decreasing to 54.81 days, indicating that Trimble was able to more efficiently convert its investments into cash within a shorter time frame. This improvement may have been the result of strategic changes in working capital management or improvements in the company's overall operations.
In 2024, there was a slight increase in the cash conversion cycle to 59.59 days, but it remained lower than the previous year, indicating that Trimble maintained its improved efficiency in converting its resources into cash. Overall, monitoring the cash conversion cycle is essential for assessing Trimble's liquidity and operational effectiveness in managing its cash flow and working capital.
Peer comparison
Dec 31, 2024