TTM Technologies Inc (TTMI)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	35.93	26.93	22.13	20.52	16.16
Days of sales outstanding (DSO)	days	34.13	34.48	31.82	31.87	34.72
Number of days of payables	days	56.43	57.09	62.68	58.03	46.86
Cash conversion cycle	days	13.64	4.32	-8.73	-5.64	4.02

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.93 + 34.13 – 56.43
= 13.64

The cash conversion cycle (CCC) of TTM Technologies Inc has exhibited significant variability over the past five years. In 2023, the company's CCC increased to 13.64 days, indicating that it took TTM Technologies approximately 13.64 days to convert its investments in inventory and accounts receivable into cash. This represents a significant increase compared to the previous year and suggests potential inefficiencies in managing its working capital.

In 2022, TTM Technologies had a CCC of 4.32 days, implying a relatively efficient conversion of inventory and receivables into cash. However, the CCC was negative in 2021 and 2020, standing at -8.73 days and -5.64 days respectively. A negative CCC suggests that the company was able to convert its investments into cash before paying its suppliers, indicative of strong liquidity management.

The company's CCC was positive in 2019 at 4.02 days, showing a moderate efficiency in terms of working capital management. Overall, the fluctuating trend in TTM Technologies' CCC indicates potential fluctuations in its ability to efficiently manage its cash conversion cycle, warranting a closer examination of its working capital practices.