NCR Voyix Corporation (VYX)
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 | 33.79 | 30.49 | 24.08 | 23.05 | 19.09 | 45.73 | 44.03 | 48.54 | 47.07 | 50.37 | 53.14 | 52.58 | 52.29 | 54.15 | 52.67 | 49.16 | 46.84 | 57.67 | 58.88 | 54.81 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 33.79 | 30.49 | 24.08 | 23.05 | 19.09 | 45.73 | 44.03 | 48.54 | 47.07 | 50.37 | 53.14 | 52.58 | 52.29 | 54.15 | 52.67 | 49.16 | 46.84 | 57.67 | 58.88 | 54.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.79 + — – —
= 33.79
The cash conversion cycle of NCR Voyix Corporation has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to June 30, 2020, the cash conversion cycle increased from 54.81 days to 58.88 days, indicating a longer period to convert investments to cash. This trend continued until December 31, 2020, where the cycle decreased significantly to 46.84 days, suggesting improved efficiency in managing working capital.
The cycle increased again through March 31, 2021, reaching 49.16 days, before rising further to 52.67 days by June 30, 2021. This period of increase in the cycle may indicate challenges in managing inventory, receivables, and payables efficiently.
Subsequently, from September 30, 2021, to December 31, 2021, there was a slight decrease in the cash conversion cycle to 52.29 days, followed by relatively stable figures around 50-54 days until December 31, 2022. During this period, the company appeared to maintain its efficiency in the conversion process.
From March 31, 2023, there was a notable decline in the cash conversion cycle, falling sharply to 19.09 days by December 31, 2023, reflecting a significant improvement in managing working capital and converting investments into cash more quickly.
The cycle increased slightly through June 30, 2024, reaching 24.08 days, and continued to rise to 33.79 days by December 31, 2024. This uptrend might indicate a temporary slowdown in the cash conversion process or challenges in managing working capital efficiently.
Overall, fluctuations in the cash conversion cycle of NCR Voyix Corporation suggest varying levels of efficiency in managing working capital and resources to generate cash flows. Efforts to maintain a shorter cycle duration can help improve liquidity and financial performance in the long run.