TTM Technologies Inc (TTMI)
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 | 41.31 | 43.12 | 41.63 | 43.47 | 42.47 | 40.43 | 35.06 | 32.17 | 30.57 | 36.71 | 39.04 | 26.08 | 24.82 | 28.22 | 26.02 | 24.91 | 24.17 | 24.44 | 21.41 | 20.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 41.31 | 43.12 | 41.63 | 43.47 | 42.47 | 40.43 | 35.06 | 32.17 | 30.57 | 36.71 | 39.04 | 26.08 | 24.82 | 28.22 | 26.02 | 24.91 | 24.17 | 24.44 | 21.41 | 20.32 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.31 + — – —
= 41.31
The cash conversion cycle of TTM Technologies Inc has displayed fluctuations over the past several quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2022, the cash conversion cycle remained relatively stable, ranging from 20 to 30 days. However, there was an upward trend observed from June 30, 2022, reaching a peak of 43.47 days by March 31, 2024.
This increase indicates that TTM Technologies Inc may be taking longer to convert its resources into sales and ultimate cash inflows, potentially signaling inefficiencies in managing its inventory, accounts receivable, or accounts payable.
It is essential for the company to closely monitor and manage its cash conversion cycle to optimize its working capital management and improve overall operational efficiency. Addressing any issues contributing to the lengthening of the cycle can help enhance liquidity and strengthen the financial position of TTM Technologies Inc.
Peer comparison
Dec 31, 2024