Dentsply Sirona Inc (XRAY)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.86 | 46.28 | 105.01 | 48.94 | 53.17 |
| Days of sales outstanding (DSO) | days | 70.99 | 59.03 | 13,687.50 | 74.33 | 70.98 |
| Number of days of payables | days | 27.31 | 20.59 | 53.42 | 31.05 | 29.14 |
| Cash conversion cycle | days | 99.55 | 84.71 | 13,739.09 | 92.22 | 95.01 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.86 + 70.99 – 27.31
= 99.55
The cash conversion cycle of DENTSPLY Sirona Inc has shown fluctuations over the past five years. It increased from 120.54 days in 2019 to 129.58 days in 2022, indicating a lengthening of the time it takes for the company to convert its investments in inventory and receivables into cash.
However, there was a slight improvement in 2023 as the cash conversion cycle decreased to 125.95 days. This suggests that the company may have optimized its inventory management and collection processes to enhance its cash flow efficiency.
Overall, DENTSPLY Sirona Inc should continue monitoring its cash conversion cycle to ensure that it remains at optimal levels, indicating effective management of working capital and liquidity.
Peer comparison
Dec 31, 2023