Veeco Instruments Inc (VECO)
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 | 216.94 | 218.55 | 239.89 | 227.05 | 244.64 | 244.10 | 235.78 | 214.51 | 197.19 | 179.83 | 175.93 | 185.35 | 182.88 | 186.60 | 193.14 | 203.22 | 204.94 | 212.88 | 199.54 | 185.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 216.94 | 218.55 | 239.89 | 227.05 | 244.64 | 244.10 | 235.78 | 214.51 | 197.19 | 179.83 | 175.93 | 185.35 | 182.88 | 186.60 | 193.14 | 203.22 | 204.94 | 212.88 | 199.54 | 185.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 216.94 + — – —
= 216.94
Veeco Instruments Inc's cash conversion cycle has displayed some fluctuations over the reporting periods. The company's cash conversion cycle measures the amount of time, in days, it takes for the company to convert its investments in inventory and accounts receivable into cash flows from sales.
From March 31, 2020, where the cycle was 185.83 days, the cycle increased to its highest level of 244.64 days by December 31, 2023. This indicates a deterioration in the efficiency of Veeco's cash conversion cycle during this period. However, from that point onward, the company managed to reduce the cycle consistently, reaching 216.94 days by December 31, 2024.
Overall, the trend shows that Veeco Instruments Inc was facing challenges in managing its working capital efficiently, leading to prolonged cash conversion cycles in the mid-term period. The recent improvements suggest that the company may have implemented strategies to streamline its operations and improve cash flow generation from sales. Further monitoring of the cash conversion cycle will be necessary to assess the sustainability of these positive developments.
Peer comparison
Dec 31, 2024