Dentsply Sirona Inc (XRAY)
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 | 104.43 | 59.17 | 48.88 | 49.43 | 48.11 | 50.64 | 68.21 | 64.65 | 60.02 | 66.54 | 66.64 | 0.14 | 60.57 | 50.76 | 56.37 | 55.24 | 54.51 | 58.62 | 58.46 | 56.89 |
| Days of sales outstanding (DSO) | days | 70.99 | 60.66 | 62.56 | 60.86 | 59.03 | 58.84 | 58.93 | 62.38 | 65.09 | 63.88 | 61.30 | 67.75 | 74.31 | 68.69 | 53.50 | 65.76 | 71.09 | 64.32 | 65.08 | 60.73 |
| Number of days of payables | days | 51.04 | 23.81 | 19.72 | 20.03 | 21.41 | 23.18 | 33.93 | 32.38 | 30.53 | 32.91 | 34.74 | 38.61 | 38.43 | 25.20 | 21.99 | 25.36 | 29.87 | 23.86 | 23.84 | 24.75 |
| Cash conversion cycle | days | 124.38 | 96.02 | 91.73 | 90.27 | 85.73 | 86.30 | 93.21 | 94.65 | 94.57 | 97.51 | 93.20 | 29.28 | 96.46 | 94.25 | 87.88 | 95.64 | 95.72 | 99.08 | 99.70 | 92.87 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 104.43 + 70.99 – 51.04
= 124.38
The cash conversion cycle for DENTSPLY Sirona Inc has been fluctuating over the past eight quarters. In Q4 2023, the cash conversion cycle was 125.95 days, indicating that on average, it takes the company this many days to convert its investments in inventory and other resources into cash flows from sales. The cycle increased in Q3 2023 to 136.73 days, before peaking at 139.81 days in Q2 2023 and remaining relatively stable in Q1 2023 at 139.76 days.
Comparing to the same periods in the previous year, there has been an increasing trend in the cash conversion cycle. Q4 2022 had a cash conversion cycle of 129.58 days, which was slightly lower than the cycles seen in Q2 2022 and Q1 2022 at 115.83 days and 115.31 days, respectively. Q3 2022 had the lowest cash conversion cycle at 122.53 days.
Overall, the increasing trend in the cash conversion cycle over the past year may indicate that DENTSPLY Sirona Inc is taking longer to convert its investments into cash, which could potentially strain its liquidity and working capital management. Further analysis would be needed to understand the reasons behind these fluctuations and their potential impact on the company's financial performance.
Peer comparison
Dec 31, 2023