Vishay Intertechnology Inc (VSH)
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 | 97.36 | 92.64 | 83.24 | 85.21 | 78.90 |
| Days of sales outstanding (DSO) | days | 45.78 | 43.43 | 44.66 | 49.40 | 44.89 |
| Number of days of payables | days | 28.72 | 28.31 | 39.42 | 37.30 | 31.79 |
| Cash conversion cycle | days | 114.42 | 107.77 | 88.48 | 97.32 | 92.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.36 + 45.78 – 28.72
= 114.42
The cash conversion cycle of Vishay Intertechnology, Inc. has shown some fluctuations over the past five years. In 2023, the cycle increased to 114.42 days compared to 107.77 days in 2022, indicating that the company took longer to convert its investments in inventory back into cash. This could suggest potential inefficiencies in managing inventory levels or collecting receivables.
On a positive note, the cash conversion cycle was lower in 2021 at 88.48 days compared to the previous years, indicating that the company managed its working capital more effectively, potentially by reducing inventory levels or improving its collection of receivables.
The upward trend from 2020 to 2023 may raise some concerns as it indicates a potential delay in receiving cash from sales or converting inventory to sales efficiently. It would be important for Vishay Intertechnology, Inc. to closely monitor and improve its processes related to inventory management, accounts receivable, and accounts payable in order to shorten its cash conversion cycle and enhance its overall liquidity position.
Peer comparison
Dec 31, 2023