Visteon Corp (VC)
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 | 30.97 | 31.37 | 37.49 | 37.96 | 28.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 30.97 | 31.37 | 37.49 | 37.96 | 28.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.97 + — – —
= 30.97
The cash conversion cycle for Visteon Corp has shown some fluctuation over the past five years. It increased from 28.05 days as of December 31, 2020, to 37.96 days as of December 31, 2021. However, it dipped slightly to 37.49 days by December 31, 2022, before falling to 31.37 days by December 31, 2023. The most recent data point as of December 31, 2024, indicates a further improvement to 30.97 days.
Overall, the trend suggests that Visteon Corp has been more efficient in managing its cash conversion cycle in the last couple of years. A lower cash conversion cycle indicates that the company is able to convert its investments in inventory into cash more quickly, which can be a positive sign of effective working capital management. The company's ability to efficiently manage its cash conversion cycle can have implications for its liquidity and overall financial health.
Peer comparison
Dec 31, 2024