Textron Inc (TXT)
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 | 1,474.12 | 1,237.96 | 1,298.35 | 1,137.30 | 1,215.40 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 1,474.12 | 1,237.96 | 1,298.35 | 1,137.30 | 1,215.40 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1,474.12 + — – —
= 1,474.12
The cash conversion cycle of Textron Inc has fluctuated over the past five years. It decreased from 1,215.40 days in 2020 to 1,137.30 days in 2021, indicating an improvement in the company's efficiency in managing its cash flow. However, in 2022, the cycle increased to 1,298.35 days, suggesting a potential slowdown in converting resources into cash.
In 2023, there was a slight decrease to 1,237.96 days, but the cycle remained elevated compared to previous years. By the end of 2024, the cycle significantly increased to 1,474.12 days, indicating a significant challenge in converting cash expenses into revenue.
Overall, Textron Inc's cash conversion cycle has shown mixed performance over the years, with fluctuations reflecting potential challenges in managing cash flow efficiently. Further analysis of operating, inventory, and accounts receivable turnover ratios may provide additional insights into the company's working capital management effectiveness.
Peer comparison
Dec 31, 2024