Waters Corporation (WAT)

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 149.56 165.87 161.60 166.21 161.61 168.54 175.87 223.89 156.39 151.51 142.27 129.58 126.17 143.66 131.40 102.81 119.94 134.78 143.66 141.28
Days of sales outstanding (DSO) days 92.01 86.50 80.50 81.69 89.69 79.09 86.43 — 90.26 — — — 81.58 — — — 90.34 80.47 81.39 82.64
Number of days of payables days 31.32 30.23 24.24 26.60 26.52 24.72 26.84 41.94 32.02 33.08 34.01 31.63 34.30 32.85 31.36 25.55 28.47 24.88 21.02 25.08
Cash conversion cycle days 210.26 222.13 217.87 221.29 224.78 222.91 235.46 181.95 214.64 118.43 108.26 97.94 173.46 110.81 100.03 77.26 181.82 190.36 204.03 198.84

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 149.56 + 92.01 – 31.32
= 210.26

The cash conversion cycle of Waters Corporation has exhibited fluctuations over the analyzed periods. The trend indicates variations in the company's efficiency in managing its working capital.

From March 31, 2020, to June 30, 2020, the cash conversion cycle increased from 198.84 days to 204.03 days, suggesting a slight deterioration in the company's ability to convert its resources into cash. However, by September 30, 2020, the cycle decreased to 190.36 days, indicating an improvement in efficiency.

The positive trend continued into December 31, 2020, with a further reduction in the cash conversion cycle to 181.82 days. This trend reversed in the following period, reaching a low of 77.26 days by March 31, 2021, exhibiting a significant improvement in cash conversion efficiency.

However, this positive trend was short-lived as the cycle increased to 173.46 days by December 31, 2021. The trend continued to fluctuate over the subsequent periods, with the cycle reaching a peak of 235.46 days by June 30, 2023, before decreasing slightly to 210.26 days by December 31, 2024.

Overall, the cash conversion cycle of Waters Corporation reflects the company's ability to effectively manage its cash flow and working capital, with fluctuations indicating changes in operational efficiency and effectiveness in converting resources into cash.