Trimble Inc (TRMB)
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 | 28.79 | 34.48 | 50.32 | 56.71 | 54.16 | 58.94 | 62.40 | 75.92 | 81.62 | 75.10 | 71.31 | 75.84 | 78.82 | 82.90 | 87.56 | 80.85 | 76.43 | 70.70 | 69.89 | 65.11 |
| Days of sales outstanding (DSO) | days | 67.49 | 65.27 | 68.35 | 58.20 | 67.04 | 54.22 | — | — | 66.26 | — | — | — | 71.85 | — | — | — | — | — | — | — |
| Number of days of payables | days | 20.19 | 24.06 | 24.41 | 23.06 | 23.62 | 29.36 | 32.18 | 40.39 | 46.57 | 44.91 | 43.33 | 40.09 | 37.41 | 34.20 | 33.33 | 35.93 | 39.01 | 38.19 | 36.02 | 31.65 |
| Cash conversion cycle | days | 76.09 | 75.68 | 94.26 | 91.84 | 97.59 | 83.80 | 30.22 | 35.54 | 101.31 | 30.19 | 27.97 | 35.75 | 113.26 | 48.70 | 54.23 | 44.92 | 37.42 | 32.51 | 33.86 | 33.47 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.79 + 67.49 – 20.19
= 76.09
The cash conversion cycle of Trimble Inc has fluctuated over the past few quarters. In the most recent quarter, the company's cash conversion cycle was 76.09 days, showing an improvement compared to the previous quarter. However, compared to the same quarter in the previous year, the cycle is slightly higher.
From a trend perspective, there was a significant increase in the cash conversion cycle in Q1 2022 and Q4 2021, which indicates a longer time taken by Trimble Inc to convert its investments in inventory and other resources back into cash. This could be a concern as it may indicate inefficiencies in managing working capital.
On a positive note, there were also periods where the cash conversion cycle was significantly lower, such as in Q2 2022 and Q3 2021. These lower values suggest that Trimble Inc was able to efficiently manage its working capital during those periods, potentially improving liquidity and overall financial health.
Overall, Trimble Inc should continue to monitor its cash conversion cycle closely to ensure that working capital is managed effectively and that liquidity is optimized. Any long-term trends in the cash conversion cycle should be analyzed to identify potential areas for improvement in operational efficiency and financial performance.
Peer comparison
Dec 31, 2023