TTM Technologies Inc (TTMI)

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 37.36 35.51 31.61 29.04 26.93 32.75 34.92 23.50 22.34 25.12 22.35 21.23 20.52 20.86 18.96 19.06 17.74 19.67 18.86 16.39
Days of sales outstanding (DSO) days 34.04 29.70 28.81 — 34.48 — — — 31.82 33.69 33.28 32.27 33.71 27.87 29.58 33.03 36.01 36.79 — —
Number of days of payables days 58.68 57.88 51.84 51.41 57.09 64.88 70.71 65.69 63.27 69.37 64.40 59.01 58.03 55.83 54.30 48.79 51.43 73.23 66.83 60.58
Cash conversion cycle days 12.73 7.33 8.58 -22.36 4.32 -32.13 -35.79 -42.19 -9.12 -10.56 -8.76 -5.52 -3.81 -7.10 -5.77 3.31 2.31 -16.77 -47.98 -44.19

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.36 + 34.04 – 58.68
= 12.73

The cash conversion cycle of TTM Technologies Inc has fluctuated over the periods indicated. The cash conversion cycle represents the number of days 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 considered more favorable as it indicates that the company is able to quickly convert its investments into cash.

Analyzing TTM Technologies Inc's cash conversion cycle data, we observe that there have been both positive and negative values recorded. Positive values suggest that the company takes a certain number of days to convert its investments into cash, while negative values indicate that the company is able to generate cash before having to pay for its investments.

In particular, TTM Technologies Inc experienced a significant improvement in its cash conversion cycle during the Dec 31, 2022, and Sep 30, 2022, periods with negative values, indicating efficient cash management and quick conversion of investments into cash flows. However, there were instances of longer cash conversion cycles during the Mar 31, 2019, and Dec 31, 2010, periods, suggesting potential challenges in managing working capital efficiently.

Overall, TTM Technologies Inc should aim to maintain a consistent and efficient cash conversion cycle to ensure optimal management of its working capital and cash flow operations. A continuous focus on improving operational efficiency and inventory management can help enhance the company's ability to convert investments into cash in a timely manner.