Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 165.17 | 183.33 | 175.00 | 145.37 | 140.72 | 44.66 | 46.43 | 49.45 | 49.38 | 55.82 | 48.91 | 49.46 | 44.32 |
| Days of sales outstanding (DSO) | days | 76.97 | 77.29 | 72.49 | 72.86 | 70.78 | 71.54 | 67.52 | 65.79 | 71.06 | 71.52 | — | — | 71.40 |
| Number of days of payables | days | 184.87 | 203.81 | 199.15 | 189.80 | 174.03 | 50.03 | 49.92 | 52.68 | 61.49 | 61.14 | — | — | 65.61 |
| Cash conversion cycle | days | 57.27 | 56.81 | 48.33 | 28.43 | 37.47 | 66.17 | 64.04 | 62.56 | 58.94 | 66.20 | 48.91 | 49.46 | 50.11 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 165.17 + 76.97 – 184.87
= 57.27
The cash conversion cycle is an important metric that measures how long it takes for a company to convert its investments in inventory and accounts receivable into cash inflows from sales. Analyzing the cash conversion cycle of Vontier Corp based on the provided data reveals fluctuations over the examined period.
From December 31, 2021, to December 31, 2022, Vontier Corp's cash conversion cycle decreased from 50.11 days to 58.94 days, indicating a slight delay in converting investments into cash. However, there was a notable increase to 66.17 days by September 30, 2023, suggesting a longer period to realize cash inflows.
The trend reversed from September 30, 2023, to March 31, 2024, as the cash conversion cycle improved significantly to 28.43 days. This positive trend continued until June 30, 2024, with a further reduction to 48.33 days. However, there was a subsequent increase to 57.27 days by December 31, 2024, indicating a slight delay in the cash conversion process.
Overall, Vontier Corp experienced fluctuations in its cash conversion cycle over the analyzed period, with periods of improvement followed by slight delays. It is important for the company to closely monitor and manage its operating cycle to ensure efficiency in converting investments into cash inflows.
Peer comparison
Dec 31, 2024