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.