Vontier Corp (VNT)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.91 | 49.00 | 44.32 | 40.74 |
| Days of sales outstanding (DSO) | days | 71.22 | 72.22 | 71.45 | 73.66 |
| Number of days of payables | days | 170.55 | 61.02 | 65.61 | 64.04 |
| Cash conversion cycle | days | 38.58 | 60.20 | 50.15 | 50.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 137.91 + 71.22 – 170.55
= 38.58
The cash conversion cycle of Vontier Corporation has fluctuated over the past five years. In 2023, the cash conversion cycle increased to 43.27 days from 41.36 days in 2022. This indicates that Vontier took longer to convert its investments in inventory and other resources into cash during 2023.
Comparing to 2021 and 2020, where the cash conversion cycle was 28.37 days and 28.16 days respectively, 2023 saw a significant uptick in the time taken for the company to convert its investments into cash.
However, when comparing the current cycle to 2019, where the cash conversion cycle was 42.78 days and higher than 2023, there seems to be an improvement in managing the process.
Overall, Vontier Corporation's cash conversion cycle has shown variations over the years, with the most recent data suggesting a slight increase in the time taken to convert investments into cash compared to the previous year.
Peer comparison
Dec 31, 2023