Dentsply Sirona Inc (XRAY)
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 | 112.25 | 121.14 | 119.25 | 119.84 | 121.21 | 128.09 | 130.19 | 133.19 | 127.35 | 118.34 | 113.71 | 104.37 | 97.33 | 101.88 | 104.62 | 105.74 | 100.97 | 106.62 | 119.97 | 118.16 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 112.25 | 121.14 | 119.25 | 119.84 | 121.21 | 128.09 | 130.19 | 133.19 | 127.35 | 118.34 | 113.71 | 104.37 | 97.33 | 101.88 | 104.62 | 105.74 | 100.97 | 106.62 | 119.97 | 118.16 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.25 + — – —
= 112.25
The cash conversion cycle of Dentsply Sirona Inc has shown fluctuation over the past few years based on the provided data. 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 December 31, 2024, the cash conversion cycle varied between a range of 97.33 days to 133.19 days. A lower cash conversion cycle indicates that the company is able to generate cash quickly from its sales and manage its working capital efficiently.
The trend indicates some improvement initially, with the cycle decreasing to 97.33 days by December 31, 2021. However, there was an increase noted in the cycle in the subsequent periods, reaching 127.35 days by December 31, 2022 before declining slightly thereafter.
A rising cash conversion cycle over time may suggest inefficiencies in inventory management, collection of receivables, or payment of payables. On the other hand, a declining cycle could indicate improved operational efficiencies and better management of working capital.
It would be essential for Dentsply Sirona Inc to monitor and analyze its cash conversion cycle regularly, identify areas of improvement, and implement strategies to optimize its working capital management for sustained financial health and performance.
Peer comparison
Dec 31, 2024