Westinghouse Air Brake Technologies Corp (WAB)
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 | 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 | 87.43 | 113.60 | 126.10 | 160.19 |
| Days of sales outstanding (DSO) | days | 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 | 75.71 | 90.19 | 105.98 | 131.82 |
| Number of days of payables | days | 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 | 57.07 | 66.53 | 82.60 | 97.67 |
| Cash conversion cycle | days | 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 | 106.06 | 137.27 | 149.48 | 194.34 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 99.94 + 45.66 – 54.69
= 90.90
The cash conversion cycle of Westinghouse Air Brake Technologies Corp has shown some fluctuations over the past eight quarters. In Q2 2023, the company's cash conversion cycle reached its highest point at 127.47 days, indicating that it takes the company longer to convert its investments in inventory and other resources into cash during that period. This was followed by a slight improvement in Q3 2023, although the cycle remained relatively high compared to earlier quarters.
Conversely, in Q4 2022, the company had its lowest cash conversion cycle at 112.26 days, suggesting a more efficient management of cash flows and working capital during that period. However, the cycle increased in subsequent quarters, fluctuating within a range between 114.72 and 121.41 days.
Overall, the trend in the cash conversion cycle of Westinghouse Air Brake Technologies Corp indicates some variability in its operational efficiency in managing cash flows and working capital over the past two years. Further analysis of the company's performance and operational strategies may be needed to better understand the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023