Veeco Instruments Inc (VECO)
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 | 179.72 | 193.30 | 186.97 | 170.79 | 156.70 | 142.54 | 138.30 | 144.85 | 142.44 | 144.56 | 147.53 | 152.30 | 150.94 | 152.05 | 141.58 | 131.76 | 131.83 | 125.56 | 125.54 | 75.75 |
| Days of sales outstanding (DSO) | days | 57.44 | 70.38 | 75.50 | 69.39 | 71.44 | 83.51 | 77.30 | 72.36 | 72.62 | 67.71 | 80.28 | 74.08 | 67.43 | 71.89 | 60.65 | 75.41 | 41.37 | 68.31 | 52.95 | 58.56 |
| Number of days of payables | days | 32.05 | 48.29 | 48.34 | 46.89 | 39.42 | 38.82 | 36.89 | 45.42 | 37.06 | 41.25 | 49.50 | 41.57 | 34.82 | 35.86 | 26.93 | 36.96 | 21.08 | 32.23 | 19.50 | 18.57 |
| Cash conversion cycle | days | 205.11 | 215.39 | 214.12 | 193.29 | 188.72 | 187.22 | 178.72 | 171.78 | 178.00 | 171.02 | 178.31 | 184.82 | 183.56 | 188.08 | 175.30 | 170.21 | 152.13 | 161.64 | 158.98 | 115.74 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 179.72 + 57.44 – 32.05
= 205.11
Veeco Instruments Inc's cash conversion cycle has shown fluctuations over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle stood at 243.29 days, indicating that on average, it takes the company about 243 days to convert its resources into cash flows from sales. This was a decrease from the previous quarter's cycle of 252.24 days. However, compared to the same quarter in the previous year, there has been an overall increase in the cash conversion cycle, suggesting potential challenges related to managing working capital efficiently.
Throughout the quarters, the company's cash conversion cycle has shown some variability, with fluctuations above and below the 200-day mark. It is essential for Veeco Instruments Inc to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow management and operational efficiency. Further analysis of the components contributing to the cycle, such as inventory turnover, accounts receivable days, and accounts payable days, would provide insights into specific areas for improvement.
Peer comparison
Dec 31, 2023