Trimble Inc (TRMB)
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 | 54.88 | 50.32 | 56.80 | 55.00 | 57.56 | 64.12 | 92.43 | 100.12 | 92.87 | 86.88 | 81.22 | 87.37 | 81.63 | 75.13 | 71.37 | 75.99 | 79.06 | 83.30 | 87.96 | 81.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 54.88 | 50.32 | 56.80 | 55.00 | 57.56 | 64.12 | 92.43 | 100.12 | 92.87 | 86.88 | 81.22 | 87.37 | 81.63 | 75.13 | 71.37 | 75.99 | 79.06 | 83.30 | 87.96 | 81.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.88 + — – —
= 54.88
Trimble Inc's cash conversion cycle has experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is efficient in managing its working capital.
From March 31, 2020, to December 31, 2020, the cash conversion cycle initially decreased from 81.17 days to 79.06 days, indicating improved efficiency in managing working capital. However, there was a slight increase to 81.63 days by December 31, 2021. This trend continued with fluctuations over the subsequent quarters, with some periods showing improvements and others indicating a slight increase in the cycle.
Notably, the cash conversion cycle showed a significant increase to 100.12 days by March 31, 2023, potentially signaling challenges in managing working capital efficiently during that period. However, there was a sharp decrease to 57.56 days by December 31, 2023, which suggests a considerable improvement in converting investments to cash.
By the end of December 31, 2024, the cash conversion cycle increased slightly to 54.88 days, indicating that Trimble Inc had efficiently managed its working capital during that period, leading to a quicker conversion of investments into cash flows. Overall, analyzing the cash conversion cycle helps in assessing the efficiency and effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2024