Valmont Industries Inc (VMI)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.50 | 82.63 | 81.09 | 60.77 | 59.57 |
| Days of sales outstanding (DSO) | days | 58.34 | 50.75 | 60.30 | 65.44 | 64.12 |
| Number of days of payables | days | 32.38 | 40.86 | 38.70 | 36.29 | 28.19 |
| Cash conversion cycle | days | 85.46 | 92.53 | 102.69 | 89.92 | 95.51 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.50 + 58.34 – 32.38
= 85.46
The cash conversion cycle of Valmont Industries Inc has fluctuated over the past five years, indicating variability in the company's efficiency in managing its working capital. A decreasing trend from 2021 to 2023 is evident, suggesting improvements in the company's ability to convert its investments into cash more quickly. However, the cycle increased in 2022 compared to 2021, showing a temporary setback in working capital efficiency.
Overall, Valmont Industries Inc has shown a mixed performance in managing its cash conversion cycle over the years. More detailed analysis would be necessary to understand the specific reasons behind these fluctuations and to assess the impact on the company's liquidity and operational effectiveness.
Peer comparison
Dec 31, 2023