Visteon Corp (VC)

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	30.97	34.56	33.27	36.46	31.37	32.63	33.28	37.30	37.49	39.83	40.08	46.68	37.96	36.50	29.55	28.76	28.05	26.66	27.65	25.87
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	30.97	34.56	33.27	36.46	31.37	32.63	33.28	37.30	37.49	39.83	40.08	46.68	37.96	36.50	29.55	28.76	28.05	26.66	27.65	25.87

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.97 + — – —
= 30.97

The cash conversion cycle of Visteon Corp fluctuated over the analyzed periods. It started at 25.87 days as of March 31, 2020, increased to 37.96 days by December 31, 2021, then decreased to 30.97 days by December 31, 2024.

Overall, the company's cash conversion cycle indicates the average number of days it takes for Visteon Corp to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle is generally preferable as it signifies that the company can efficiently manage its working capital and generate cash flow. In Visteon Corp's case, a decreasing trend in the cash conversion cycle from 2022 to 2024 suggests improved efficiency in managing inventory, accounts receivable, and accounts payable.

However, a high cash conversion cycle could indicate inefficiencies in operational processes, potentially leading to cash flow issues and increased working capital requirements. Thus, ongoing monitoring and management of the cash conversion cycle are essential for Visteon Corp to sustain its financial health and operational efficiency.