Westinghouse Air Brake Technologies Corp (WAB)
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 | 97.10 | 100.06 | 99.96 | 100.92 | 99.94 | 100.58 | 108.74 | 109.00 | 102.57 | 105.51 | 101.78 | 96.54 | 89.72 | 88.88 | 87.69 | 91.23 | 88.84 | 92.77 | 91.81 | 85.84 |
| Days of sales outstanding (DSO) | days | 40.76 | 47.45 | 46.18 | 46.02 | 45.66 | 52.87 | 51.94 | 51.06 | 47.06 | 46.06 | 46.85 | 46.96 | 51.67 | 46.20 | 49.34 | 49.48 | 48.20 | 48.08 | 44.79 | 73.09 |
| Number of days of payables | days | 54.55 | 56.25 | 56.28 | 55.17 | 54.69 | 55.66 | 61.34 | 66.19 | 65.61 | 62.90 | 62.51 | 55.87 | 53.76 | 49.83 | 52.51 | 52.13 | 49.18 | 50.15 | 51.33 | 52.26 |
| Cash conversion cycle | days | 83.31 | 91.25 | 89.86 | 91.77 | 90.90 | 97.78 | 99.34 | 93.87 | 84.03 | 88.67 | 86.12 | 87.62 | 87.64 | 85.25 | 84.52 | 88.59 | 87.86 | 90.71 | 85.28 | 106.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.10 + 40.76 – 54.55
= 83.31
Westinghouse Air Brake Technologies Corp's cash conversion cycle has shown fluctuations over the past few years. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from a high of 106.67 days on March 31, 2020, to a low of 83.31 days on December 31, 2024.
The trend in the cash conversion cycle for Westinghouse Air Brake Technologies Corp indicates some variability in the efficiency of its working capital management. The cycle decreased from 106.67 days on March 31, 2020, to 84.52 days on June 30, 2021, showing improvements in managing inventory and collecting receivables. However, the cycle increased afterwards, peaking at 99.34 days on June 30, 2023, before declining to 83.31 days on December 31, 2024.
Analyzing the cash conversion cycle can provide insights into the company's operational efficiency, inventory management, and collection practices. Overall, a decreasing trend in the cycle indicates improved working capital management, while an increasing trend may suggest inefficiencies requiring attention. Further analysis of the components of the cash conversion cycle, including days inventory outstanding and days sales outstanding, could provide additional clarity on Westinghouse Air Brake Technologies Corp's working capital performance.
Peer comparison
Dec 31, 2024