Vishay Intertechnology Inc (VSH)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 108.87 | 107.96 | 104.06 | 100.80 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 108.87 | 107.96 | 104.06 | 100.80 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.87 + — – —
= 108.87
The cash conversion cycle of Vishay Intertechnology Inc has shown fluctuating trends over the periods reported. The cash conversion cycle, which represents the time it takes for a company to convert its resources into cash flows, increased from 85.76 days at March 31, 2020, to a peak of 108.87 days at December 31, 2024.
A higher cash conversion cycle indicates that the company is taking longer to convert its investments in inventory and receivables into cash, which may be concerning as it ties up capital and may indicate inefficiencies in the company's operations.
It is essential for Vishay Intertechnology Inc to closely monitor and manage its cash conversion cycle to ensure smoother cash flow operations and optimize its working capital management. Strategies such as improving inventory turnover, reducing receivables collection period, and optimizing payment cycles to suppliers could help in shortening the cash conversion cycle and improving overall liquidity.
Peer comparison
Dec 31, 2024