TTM Technologies Inc (TTMI)
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 | 41.78 | 42.75 | 30.57 | 24.82 | 24.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 41.78 | 42.75 | 30.57 | 24.82 | 24.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.78 + — – —
= 41.78
TTM Technologies Inc's cash conversion cycle has shown fluctuations over the years. From December 31, 2020, to December 31, 2021, the cash conversion cycle increased slightly from 24.17 days to 24.82 days. However, in the following years, the cycle displayed a significant upward trend, reaching 30.57 days by December 31, 2022. Further, there was a notable jump to 42.75 days by December 31, 2023, before decreasing slightly to 41.78 days by December 31, 2024.
The increasing trend in the cash conversion cycle indicates a lengthening time period required by TTM Technologies Inc to convert its investments in inventory into cash receipts from sales. A longer cash conversion cycle may signify inefficiencies in managing inventory, collecting receivables, or extending payment terms to suppliers, which could impact the company's liquidity and working capital management. It is essential for TTM Technologies Inc to analyze the underlying factors contributing to these variations and implement strategies to optimize its cash conversion cycle for better financial performance.
Peer comparison
Dec 31, 2024