Veralto Corporation (VLTO)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.00 | 31.75 | 30.47 |
| Days of sales outstanding (DSO) | days | 69.84 | 61.15 | 59.28 |
| Number of days of payables | days | 38.41 | 41.29 | 38.77 |
| Cash conversion cycle | days | 59.44 | 51.61 | 50.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.00 + 69.84 – 38.41
= 59.44
The cash conversion cycle of Veralto Corporation for the three reported periods shows a trend of fluctuation.
On June 30, 2024, the company had a cash conversion cycle of 50.98 days, indicating that it takes approximately 51 days for Veralto to convert its investments in inventory and other resources back into cash from its sales.
By September 30, 2024, the cash conversion cycle increased slightly to 51.61 days, suggesting a slight delay in the company's ability to convert its resources into cash compared to the previous period.
However, by December 31, 2024, the cash conversion cycle jumped further to 59.44 days, signifying a significant increase in the time it takes for Veralto Corporation to complete a full cash conversion cycle.
Overall, the increasing trend in the cash conversion cycle over the three periods might indicate potential inefficiencies in Veralto's management of inventory, accounts receivable, and accounts payable, which could impact the company's working capital management and overall liquidity position. It is important for the company to closely monitor and possibly improve its cash conversion cycle to enhance its operational efficiency and cash flow management.
Peer comparison
Dec 31, 2024