Vishay Intertechnology Inc (VSH)
Cash conversion cycle
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 97.36 | 95.91 | 97.60 | 98.39 | 92.64 | 91.93 | 96.48 | 92.24 | 83.24 | 86.24 | 86.03 | 85.81 | 85.21 | 85.50 | 87.72 | 85.76 | 78.90 | 78.06 | 78.85 | 80.83 |
| Days of sales outstanding (DSO) | days | 45.78 | 46.53 | 46.69 | — | 43.43 | — | — | — | 44.66 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 28.72 | 30.91 | 34.60 | 32.93 | 28.31 | 33.42 | 37.06 | 36.07 | 39.42 | 35.89 | 37.98 | 37.43 | 37.30 | 30.88 | 29.04 | 29.14 | 31.79 | 24.84 | 27.26 | 32.35 |
| Cash conversion cycle | days | 114.42 | 111.53 | 109.69 | 65.46 | 107.77 | 58.51 | 59.42 | 56.17 | 88.48 | 50.35 | 48.05 | 48.38 | 47.92 | 54.61 | 58.67 | 56.62 | 47.11 | 53.23 | 51.59 | 48.47 |
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 for Vishay Intertechnology, Inc. has shown a fluctuating trend over the past eight quarters. In Q1 2022, the company had a relatively low cash conversion cycle of 102.03 days, indicating that it took approximately 102 days for the company to convert its investments in inventory and other resources into cash inflows from sales.
Subsequently, the cash conversion cycle increased in Q2 2022 and Q3 2022, reaching a peak of 105.91 days, before decreasing slightly in Q4 2022 to 103.08 days. The cycle then increased again in Q1 2023 to 111.57 days, reflecting a lengthened period between cash outflows for production-related expenses and cash inflows from sales.
In Q2 2023, the cash conversion cycle decreased to 109.69 days, followed by further reductions in Q3 2023 (111.53 days) and Q4 2023 (114.42 days). The rising trend in the most recent quarters suggests that Vishay Intertechnology, Inc. may be experiencing challenges in efficiently managing its working capital and transforming its assets into revenue-generating activities.
Overall, monitoring the cash conversion cycle provides insights into the company's operational efficiency, liquidity management, and ability to effectively utilize its resources to generate cash flows. Changes in the cycle over time can indicate improvements or challenges in the company's working capital management practices.
Peer comparison
Dec 31, 2023