Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Inventory Turnover
- The inventory turnover ratio shows moderate fluctuations over the observed quarters. The ratio increased from approximately 5.37 to a peak of about 5.99 during late 2020, followed by a decline to lows near 4.70 by early 2025. This suggests that inventory management efficiency slightly deteriorated towards the end of the period.
- Receivables Turnover
- This ratio exhibits variability with an initial drop from 8.84 down to around 7.36, followed by periods of recovery reaching as high as 9.67 in early 2025. The pattern indicates some fluctuations in collections efficiency, with improvement in recent periods, suggesting improvement in converting receivables into cash.
- Payables Turnover
- The payables turnover ratio decreased from about 4.57 to a low near 4.07 in late 2020 but then showed a general increasing trend, peaking around 5.31 in late 2023. The ratio decreased again toward early 2025. This reflects changes in the frequency of payments to suppliers, with increased turnover indicating faster payables settlement during mid-periods and a tendency to slow down more recently.
- Working Capital Turnover
- Data for working capital turnover is sparse, with notable spikes around 1022.67 and 1996.6 during two isolated quarters. The absence of a continuous data series makes trend analysis infeasible, but these spikes suggest periods of significant operational efficiency improvements.
- Average Inventory Processing Period
- The average days inventory is held demonstrate an upward trend from 68 days up to 78 days by early 2025, with some oscillations. Longer processing periods indicate slower inventory movement, which aligns with the decreasing inventory turnover ratio and may imply a build-up of inventory or slower sales cycles.
- Average Receivable Collection Period
- There is variability here as well, with periods ranging roughly between 38 and 52 days. After an initial increase up to about 50 days, the period generally trends downward towards 38 days by early 2025. This trend implies an enhancement in collections efficiency, reducing the time customers take to pay.
- Operating Cycle
- The operating cycle, combining inventory and receivables periods, trends mostly within 105 to 124 days, showing some volatility. The cycle lengthened notably around mid-2022 to late 2023 and shortened again thereafter. These changes reflect the combined effects of inventory and receivable management on the overall operational duration.
- Average Payables Payment Period
- The average days payables are outstanding generally increased from 80 days to about 90 days in 2020, decreased to the high 60s, and then rose again to around 78 days by early 2025. This shows a strategic extension and contraction in payment cycles to suppliers, which can impact cash flow management.
- Cash Conversion Cycle
- The cash conversion cycle saw an increase from 19 days in late 2020 to a peak of 53 days in late 2022, followed by a reduction to around 39–45 days more recently. Longer cycles indicate longer time spans before cash is recovered from operations, with recent improvements suggesting better cash flow efficiency.
Turnover Ratios
Average No. Days
Inventory Turnover
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Cost of goods sold | 2,746,600) | 2,724,000) | 3,135,000) | 3,208,100) | 2,836,300) | 2,703,500) | 3,200,500) | 3,368,300) | 3,021,500) | 2,996,700) | 3,458,000) | 3,423,300) | 2,945,800) | 2,882,400) | 3,007,100) | 2,968,400) | 2,544,000) | 2,360,100) | 2,666,900) | 2,395,100) | 2,257,000) | |||||||
Inventories | 2,515,200) | 2,288,100) | 2,267,400) | 2,289,100) | 2,378,000) | 2,329,800) | 2,244,300) | 2,439,000) | 2,707,800) | 2,626,500) | 2,547,800) | 2,411,600) | 2,328,600) | 1,927,200) | 1,816,000) | 1,804,100) | 1,847,300) | 1,804,100) | 1,672,800) | 1,788,600) | 1,954,800) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Inventory turnover1 | 4.70 | 5.20 | 5.24 | 5.22 | 5.09 | 5.28 | 5.61 | 5.27 | 4.76 | 4.88 | 4.99 | 5.08 | 5.07 | 5.92 | 5.99 | 5.84 | 5.39 | 5.37 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 8.61 | 8.81 | 8.27 | 8.22 | 8.23 | 8.27 | 8.42 | 8.88 | 9.29 | 9.83 | 10.75 | 10.66 | 10.36 | 10.12 | 9.86 | 9.56 | 9.20 | 8.90 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024
+ Cost of goods soldQ2 2024)
÷ Inventories
= (2,746,600 + 2,724,000 + 3,135,000 + 3,208,100)
÷ 2,515,200 = 4.70
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the cost of goods sold (COGS), inventories, and inventory turnover ratio over the observed periods.
- Cost of Goods Sold (COGS)
- There is a general upward trend in COGS from March 2020 through June 2022, with values increasing from approximately 2,257,000 thousand USD to a peak of 3,458,000 thousand USD. This suggests increasing production or sales volume, or potentially rising input costs during this period. Following the peak, a decline is observed from December 2022 onwards, with COGS decreasing to about 2,746,600 thousand USD by March 2025. This reduction may indicate either improved cost controls, reduced sales volume, or changes in product mix.
- Inventories
- Inventories fluctuate throughout the periods but show an overall increase from 1,954,800 thousand USD in March 2020 to about 2,515,200 thousand USD by March 2025. Notably, inventories dropped between March 2023 and September 2023, suggesting efforts to reduce stock levels or improved inventory management. Following this dip, inventories gradually recovered and rose again. The fluctuations in inventory levels seem somewhat inversely correlated with the COGS trends in certain periods, implying possible adjustments in inventory policies or supply chain dynamics.
- Inventory Turnover Ratio
- The inventory turnover ratio starts at 5.37 in September 2020 and shows moderate fluctuations over time, reaching a low near 4.7 by March 2025. The downward trend from mid-2023 suggests slower movement of inventory relative to cost of goods sold, which may imply either overstocking or slower sales velocity in recent quarters. Prior to this, the ratio generally hovered in the range of approximately 5.0 to 5.9, indicating relatively stable inventory efficiency during that time.
Overall, the data indicates a period of rising costs and inventory through mid-2022, followed by a phase of cost reduction and inventory adjustments. The lowering inventory turnover towards the end of the timeline may warrant further analysis to determine whether it reflects operational inefficiencies or strategic inventory buildup in anticipation of future sales.
Receivables Turnover
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Net sales | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | 4,762,100) | 5,146,700) | 5,379,800) | 4,656,000) | 4,488,800) | 5,122,200) | 4,604,000) | 4,146,700) | |||||||
Accounts receivable, net | 2,813,100) | 2,388,800) | 2,973,400) | 3,048,100) | 2,809,100) | 2,467,900) | 2,940,900) | 3,117,800) | 2,909,200) | 2,563,600) | 2,897,600) | 2,982,500) | 2,783,600) | 2,352,400) | 2,598,000) | 2,590,600) | 2,414,100) | 2,078,100) | 2,454,500) | 2,472,500) | 2,291,500) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Receivables turnover1 | 8.19 | 9.67 | 7.75 | 7.55 | 8.18 | 9.34 | 7.83 | 7.36 | 7.77 | 8.64 | 7.48 | 6.97 | 7.29 | 8.48 | 7.57 | 7.58 | 7.82 | 8.84 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 6.67 | 7.14 | 6.78 | 6.56 | 6.54 | 6.96 | 6.92 | 6.90 | 7.02 | 7.32 | 7.34 | 6.79 | 6.56 | 6.84 | 6.82 | 6.67 | 6.70 | 6.54 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Receivables turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Accounts receivable, net
= (5,305,700 + 5,297,200 + 6,162,500 + 6,271,500)
÷ 2,813,100 = 8.19
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales demonstrate considerable fluctuations across the reported quarters. Starting from approximately $4.15 billion in the first quarter of 2020, there is an overall upward trajectory until the third quarter of 2022 where net sales peak near $6.05 billion. This is followed by a decline in the subsequent quarter ending December 2022 to about $5.23 billion. The net sales trend again rises toward mid-2023, peaking near $6.24 billion in the second quarter of 2023 before decreasing and showing volatility toward the first quarter of 2025, ending near $5.31 billion. Generally, this indicates a cyclical sales pattern with notable peaks around mid-year periods.
- Accounts Receivable, Net
- Accounts receivable also exhibit variability but within a narrower band compared to net sales. The figure begins at approximately $2.29 billion in the first quarter of 2020, rising moderately to about $2.60 billion by mid-2021. After slight fluctuations, it surges to roughly $3.12 billion in the mid-2023 quarter, then decreases steadily toward early 2025, ending near $2.81 billion. The pattern of receivables parallels somewhat with sales but with less volatility, suggesting consistent credit management practices amidst sales fluctuations.
- Receivables Turnover Ratio
- The receivables turnover ratio, though sporadically reported, reveals some important insights. This ratio fluctuates between a low of approximately 6.97 and a high near 9.67 over the reported periods. Notably, the ratio peaks during the early 2024 and early 2025 quarters, indicating improved efficiency in collecting receivables. Contrastingly, lower ratios in late 2020 and late 2022 suggest periods of slower collections or extended credit terms. Overall, there is a general tendency toward improved turnover efficiency in recent periods.
- Integrated Observations
- Correlating the three metrics, increases in net sales often coincide with rises in accounts receivable, reflecting business growth driving higher sales on credit. The receivables turnover ratio's variability indicates sporadic changes in collection effectiveness, potentially influenced by the changing sales volume and credit policies. The recent upward trend in turnover ratio suggests stronger receivables management, potentially enhancing cash flow despite sales volatility. The cyclical nature of sales and receivables underscores the need for careful working capital management to maintain liquidity.
Payables Turnover
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Cost of goods sold | 2,746,600) | 2,724,000) | 3,135,000) | 3,208,100) | 2,836,300) | 2,703,500) | 3,200,500) | 3,368,300) | 3,021,500) | 2,996,700) | 3,458,000) | 3,423,300) | 2,945,800) | 2,882,400) | 3,007,100) | 2,968,400) | 2,544,000) | 2,360,100) | 2,666,900) | 2,395,100) | 2,257,000) | |||||||
Accounts payable | 2,512,900) | 2,253,200) | 2,537,700) | 2,493,900) | 2,453,900) | 2,315,000) | 2,424,800) | 2,489,700) | 2,513,600) | 2,436,500) | 2,808,400) | 2,992,900) | 2,860,800) | 2,403,000) | 2,675,400) | 2,502,800) | 2,217,000) | 2,117,800) | 2,056,200) | 1,848,400) | 1,958,400) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Payables turnover1 | 4.70 | 5.28 | 4.68 | 4.79 | 4.93 | 5.31 | 5.19 | 5.16 | 5.13 | 5.26 | 4.53 | 4.10 | 4.13 | 4.74 | 4.07 | 4.21 | 4.50 | 4.57 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 6.98 | 6.84 | 6.06 | 6.02 | 5.99 | 5.79 | 6.36 | 6.20 | 6.49 | 6.49 | 6.50 | 5.66 | 5.40 | 5.01 | 5.44 | 5.14 | 5.30 | 4.97 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Payables turnover
= (Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024
+ Cost of goods soldQ2 2024)
÷ Accounts payable
= (2,746,600 + 2,724,000 + 3,135,000 + 3,208,100)
÷ 2,512,900 = 4.70
2 Click competitor name to see calculations.
The data reveals distinct patterns in the cost of goods sold (COGS), accounts payable, and payables turnover across several fiscal quarters. The analysis identifies trends, fluctuations, and possible operational implications.
- Cost of Goods Sold (COGS)
-
The COGS generally shows an upward trend from early 2020 through 2022, increasing from approximately 2,257 million USD in the first quarter of 2020 to a peak exceeding 3,458 million USD in the third quarter of 2022. This indicates rising costs associated with production or procurement over this period.
Following the peak in late 2022, the COGS exhibits a decline, dropping to around 2,703 million USD by the first quarter of 2025. This downward movement over the last several quarters could reflect improved cost management, changes in input prices, or shifts in sales volume.
Seasonal or cyclical patterns are observable, such as recurring decreases in the fourth quarter of each year, possibly related to inventory adjustments or demand cycles inherent in the industry.
- Accounts Payable
-
Accounts payable display a generally increasing trend from early 2020 through mid-2022, rising from approximately 1,958 million USD to a high of about 3,002 million USD. This suggests increasing short-term liabilities, potentially due to higher purchasing activity or extended payment terms.
After mid-2022, payables decrease significantly, falling to around 2,513 million USD by the first quarter of 2025. This decline points to a tightening of credit terms with suppliers or improved cash flow management.
Volatility is apparent in certain quarters, with notable dips and recoveries, implying dynamic supplier negotiations or fluctuating purchasing volumes.
- Payables Turnover Ratio
-
The payables turnover ratio displays consistent fluctuations between approximately 4.0 and 5.3 over the observed periods, indicating the frequency at which the company pays off its suppliers.
A rising ratio generally suggests quicker payment to suppliers, while a declining ratio implies slower payments. The ratio peaked above 5.3 in several quarters, especially towards the end of 2023 and in the first quarter of 2025, implying a trend toward faster payments during these times.
Conversely, lower ratios between 4.0 and 4.7 during mid-to-late 2021 and parts of 2024 suggest relatively slower settlement of obligations within those quarters.
These variations imply active management of payables consistent with changes in cash flow or supplier agreements.
In summary, the company demonstrates growth in costs and liabilities through mid-2022, followed by a trend toward reduction in both metrics. Payables turnover shows responsiveness to these changes, reflecting adjustments in payment practices over time. The observed patterns indicate active operational and financial management that adapts to evolving conditions in cost structure and supplier relationships.
Working Capital Turnover
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
Current assets | 6,039,700) | 5,400,800) | 5,974,300) | 6,050,600) | 5,842,400) | 5,512,900) | 6,198,800) | 6,350,600) | 6,292,800) | 5,907,700) | 6,117,200) | 6,259,500) | 6,086,400) | 5,053,700) | 5,378,400) | 5,185,700) | 5,109,600) | 4,591,400) | 5,175,600) | 4,883,200) | 4,928,000) | |||||||
Less: Current liabilities | 7,876,700) | 6,808,700) | 7,218,100) | 7,466,600) | 7,483,500) | 6,626,900) | 6,623,200) | 6,339,100) | 6,306,000) | 5,960,700) | 6,096,000) | 7,198,200) | 6,953,100) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | 4,594,400) | 4,358,300) | 4,459,600) | 5,220,200) | |||||||
Working capital | (1,837,000) | (1,407,900) | (1,243,800) | (1,416,000) | (1,641,100) | (1,114,000) | (424,400) | 11,500) | (13,200) | (53,000) | 21,200) | (938,700) | (866,700) | (665,800) | (1,100,100) | (1,004,700) | (542,000) | (3,000) | 817,300) | 423,600) | (292,200) | |||||||
Net sales | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | 4,762,100) | 5,146,700) | 5,379,800) | 4,656,000) | 4,488,800) | 5,122,200) | 4,604,000) | 4,146,700) | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Working capital turnover1 | — | — | — | — | — | — | — | 1,996.60 | — | — | 1,022.67 | — | — | — | — | — | — | — | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Working capital turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Working capital
= (5,305,700 + 5,297,200 + 6,162,500 + 6,271,500)
÷ -1,837,000 = —
2 Click competitor name to see calculations.
- Working Capital
-
Working capital exhibited significant volatility over the observed periods. Initially, a negative working capital of -292,200 thousand USD was recorded in March 2020, which then shifted to positive territory in the subsequent quarters, reaching a peak of 817,300 thousand USD by September 2020. However, this improvement was short-lived as working capital reversed to negative again by December 2020 and continued to deteriorate through 2021, peaking negatively at -1,100,100 thousand USD in September 2021.
Throughout 2022 and into early 2023, working capital remained mostly negative with minor improvements, including some small positive figures in June 2023 and September 2023. The trend worsened again from late 2023 through 2024, declining steadily to -1,837,000 thousand USD by March 2025, indicating increasing liquidity pressures or significant changes in current asset and liability balances.
- Net Sales
-
Net sales demonstrated an overall increasing trend with some fluctuations across the quarters. Starting at 4,146,700 thousand USD in March 2020, sales saw growth, reaching above 5,000,000 thousand USD from September 2020 onwards, and peaking at 6,270,000 thousand USD in June 2024.
Despite a general upward trajectory, some quarters showed declines, such as a decrease in December 2020 to 4,488,800 thousand USD and several declines in 2023 and 2025. Overall, net sales remained relatively strong and robust, indicating continued demand or market expansion during the period analyzed.
- Working Capital Turnover Ratio
-
The working capital turnover ratio is sparsely reported for a few periods, with extremely high values recorded. Specifically, in September 2022, the ratio reached 1,022.67, and in September 2023, it further surged to 1,996.6. Such high ratios indicate that net sales significantly outpaced working capital, consistent with the negative working capital figures observed.
The limited availability of turnover data and extremely high reported values suggest that working capital was minimal or negative, making the ratio less stable and reflective of strong sales relative to available working capital resources. This could point to efficient use of capital but also suggests potential liquidity risks.
Average Inventory Processing Period
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Inventory turnover | 4.70 | 5.20 | 5.24 | 5.22 | 5.09 | 5.28 | 5.61 | 5.27 | 4.76 | 4.88 | 4.99 | 5.08 | 5.07 | 5.92 | 5.99 | 5.84 | 5.39 | 5.37 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average inventory processing period1 | 78 | 70 | 70 | 70 | 72 | 69 | 65 | 69 | 77 | 75 | 73 | 72 | 72 | 62 | 61 | 62 | 68 | 68 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 42 | 41 | 44 | 44 | 44 | 44 | 43 | 41 | 39 | 37 | 34 | 34 | 35 | 36 | 37 | 38 | 40 | 41 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.70 = 78
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio shows a fluctuating but generally declining trend over the observed periods. It begins around 5.37 to 5.99 between March 2021 and December 2021, indicating relatively efficient inventory management during that year. However, from 2022 onward, a gradual decrease is evident, reaching as low as 4.7 by March 2025. This decline suggests a slowing rate at which inventory is being sold and replaced, which may imply either increased inventory levels, decreased sales velocity, or a combination of both.
- Average Inventory Processing Period
- The average inventory processing period inversely reflects the inventory turnover ratio and confirms the trends observed. Starting at 68 days in March 2021, the period decreases to a low of 61 days by December 2021, aligning with the higher turnover rates during that time. Subsequently, the processing period extends gradually, peaking at approximately 78 days by March 2025. This extension indicates that inventory is held longer before being sold, reinforcing the observed slowdown in inventory movement.
- Overall Inventory Management Insights
- The data suggests that inventory management efficiency deteriorated somewhat over the evaluated timeframe. While the company maintained strong turnover and relatively short inventory processing periods through late 2021, the following years show increasing inventory holding durations and reduced turnover. This could point to challenges such as overstocking, changes in demand, supply chain constraints, or shifts in product mix affecting inventory dynamics. Monitoring these trends will be important to align inventory strategies with market conditions and operational objectives.
Average Receivable Collection Period
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Receivables turnover | 8.19 | 9.67 | 7.75 | 7.55 | 8.18 | 9.34 | 7.83 | 7.36 | 7.77 | 8.64 | 7.48 | 6.97 | 7.29 | 8.48 | 7.57 | 7.58 | 7.82 | 8.84 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average receivable collection period1 | 45 | 38 | 47 | 48 | 45 | 39 | 47 | 50 | 47 | 42 | 49 | 52 | 50 | 43 | 48 | 48 | 47 | 41 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 55 | 51 | 54 | 56 | 56 | 52 | 53 | 53 | 52 | 50 | 50 | 54 | 56 | 53 | 54 | 55 | 54 | 56 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.19 = 45
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio experienced fluctuations across the reported periods. Beginning in March 2021, the ratio displayed a decline from 8.84 to a low of 7.29 by June 2022. This downward trend indicates a slowing in the rate at which receivables are collected. Subsequently, the ratio improved, reaching a higher point of 9.34 by March 2024, suggesting enhanced efficiency in collections during that period. Toward the end of the timeline, the ratio remained generally elevated with values around 9.67 and 8.19, reflecting better performance compared to the earlier mid-cycle lows.
- Average Receivable Collection Period
- The average collection period, measured in days, shows an inverse relationship to the receivables turnover ratio. From March 2021 onwards, the collection period increased from 41 days to a peak of 52 days by September 2022, signifying a longer duration for receivables to be converted into cash. Following this peak, the period shortened to as low as 38 days by March 2025, indicating more efficient collection processes in the later periods. Minor fluctuations persisted, but the general trend toward a reduced collection period in recent quarters suggests improved cash flow management.
- Overall Trend Analysis
- The data reveals a cyclical pattern in the management of accounts receivable. The mid-period of the timeline shows a decline in turnover ratio accompanied by a lengthening of the collection period, implying less effective receivables handling. Conversely, the latter part of the timeline shows an improvement in turnover ratio and a reduction in collection days, signaling a restoration of collection efficiency. This alternating pattern may be attributable to external market conditions or internal operational changes affecting credit and collection policies.
Operating Cycle
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | 78 | 70 | 70 | 70 | 72 | 69 | 65 | 69 | 77 | 75 | 73 | 72 | 72 | 62 | 61 | 62 | 68 | 68 | — | — | — | |||||||
Average receivable collection period | 45 | 38 | 47 | 48 | 45 | 39 | 47 | 50 | 47 | 42 | 49 | 52 | 50 | 43 | 48 | 48 | 47 | 41 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Operating cycle1 | 123 | 108 | 117 | 118 | 117 | 108 | 112 | 119 | 124 | 117 | 122 | 124 | 122 | 105 | 109 | 110 | 115 | 109 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 97 | 92 | 98 | 100 | 100 | 96 | 96 | 94 | 91 | 87 | 84 | 88 | 91 | 89 | 91 | 93 | 94 | 97 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 78 + 45 = 123
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period displays a notable fluctuation throughout the observed timeline. Starting at around 68 days in early 2021, this metric decreased to a low of 61 days by the end of 2021, indicating an improvement in inventory turnover. However, from 2022 onward, the period generally trended upwards, reaching a peak of 78 days by the first quarter of 2025. This upward trend suggests increasing inventory holding time, which may signal slower inventory movement or changes in stock management practices.
- Average receivable collection period
- The average receivable collection period shows variability with a range generally between 38 and 52 days. Initially increasing from 41 days to a peak of 52 days in late 2021, it then experienced decreases and rebounds, ending near 45 days in early 2025. A notable dip to 38 days occurred in the first quarter of 2024, reflecting an improvement in collection efficiency, but subsequent rises indicate some inconsistency in accounts receivable management or credit terms enforcement.
- Operating cycle
- The operating cycle, combining inventory and receivable metrics, follows a pattern of relative stability interspersed with periods of increase. Beginning around 109 days in early 2021, it increased to about 124 days by mid-2022 and early 2023, reflecting extended time to convert inventory and receivables into cash. After a decline toward 108-112 days in late 2023 and early 2024, it rose again, reaching 123 days by the first quarter of 2025. This pattern indicates periods of both operational efficiency and challenges, possibly linked to market or internal factors affecting both inventory turnover and collections.
- Summary
- Overall, the data suggests that while there were phases of operational efficiency, particularly in inventory processing and receivable collection, there are also noticeable periods of delay. The increasing inventory processing period in recent years is a point of concern, as it could impact liquidity and working capital management. The fluctuations in the receivable collection period highlight the need for consistent credit control policies. The operating cycle's variability aligns with these observations, illustrating the interconnectedness of inventory and receivables management in overall operational performance.
Average Payables Payment Period
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Payables turnover | 4.70 | 5.28 | 4.68 | 4.79 | 4.93 | 5.31 | 5.19 | 5.16 | 5.13 | 5.26 | 4.53 | 4.10 | 4.13 | 4.74 | 4.07 | 4.21 | 4.50 | 4.57 | — | — | — | |||||||
Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
Average payables payment period1 | 78 | 69 | 78 | 76 | 74 | 69 | 70 | 71 | 71 | 69 | 81 | 89 | 88 | 77 | 90 | 87 | 81 | 80 | — | — | — | |||||||
Benchmarks (no. days) | ||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 52 | 53 | 60 | 61 | 61 | 63 | 57 | 59 | 56 | 56 | 56 | 64 | 68 | 73 | 67 | 71 | 69 | 73 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.70 = 78
2 Click competitor name to see calculations.
- Payables turnover ratio
- The payables turnover ratio exhibits fluctuations over the reported periods. Starting at 4.57 in March 2020, it slightly decreased to 4.07 by December 2020, indicating a slowdown in the rate at which payables were settled. Throughout 2021, the ratio showed some recovery, reaching 5.26 in the first quarter of 2023, which suggests improved efficiency in payments to suppliers. However, the latter periods, particularly from mid-2023 to early 2025, reflect a mild downward trend with values ranging from approximately 5.31 to 4.7, implying some variability in payable cycles. Overall, the ratio remains within a moderate range, indicating stable, though not drastically changing, short-term debt management.
- Average payables payment period (number of days)
- The average number of days taken to pay suppliers shows a corresponding inverse relationship to the payables turnover ratio, as expected. From 80 days in March 2020, the payment period increased to a peak of 90 days by December 2020, indicating a lengthening in payment duration. This period shortened significantly to 69 days in the first quarter of 2023, suggesting enhanced payment speed or improved liquidity. After this point, the payment days moderately fluctuate between 69 and 78 days, with minor increases toward the end of 2024 and a return to 69 days as of the first quarter of 2025. The pattern suggests periodic adjustments in cash management policies or supplier payment negotiations but overall reflects an attempt to maintain payment periods within approximately two to three months.
- Overall trends and insights
- The data collectively indicate that the company experienced variability in its accounts payable management over the timeframe. Early in the period, payables turnover decreased and payment periods extended, potentially reflecting operational or economic challenges. Subsequently, from 2021 through early 2023, there was a trend toward quicker payments and higher payables turnover, indicative of optimized cash flow management or stronger working capital positions. The latest data signals a stabilization with some oscillations, consistent with normal operational variance. No extreme shifts or anomalies are present, suggesting consistent, though adaptive, management of supplier payment cycles.
Cash Conversion Cycle
Mar 31, 2025 | 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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | ||||||||||||||||||||||||||||
Average inventory processing period | 78 | 70 | 70 | 70 | 72 | 69 | 65 | 69 | 77 | 75 | 73 | 72 | 72 | 62 | 61 | 62 | 68 | 68 | — | — | — | |||||||
Average receivable collection period | 45 | 38 | 47 | 48 | 45 | 39 | 47 | 50 | 47 | 42 | 49 | 52 | 50 | 43 | 48 | 48 | 47 | 41 | — | — | — | |||||||
Average payables payment period | 78 | 69 | 78 | 76 | 74 | 69 | 70 | 71 | 71 | 69 | 81 | 89 | 88 | 77 | 90 | 87 | 81 | 80 | — | — | — | |||||||
Short-term Activity Ratio | ||||||||||||||||||||||||||||
Cash conversion cycle1 | 45 | 39 | 39 | 42 | 43 | 39 | 42 | 48 | 53 | 48 | 41 | 35 | 34 | 28 | 19 | 23 | 34 | 29 | — | — | — | |||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
Linde plc | 45 | 39 | 38 | 39 | 39 | 33 | 39 | 35 | 35 | 31 | 28 | 24 | 23 | 16 | 24 | 22 | 25 | 24 | — | — | — |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 78 + 45 – 78 = 45
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a gradual increase from around 61-62 days in late 2020 to a peak of 78 days at the end of 2024. There is some fluctuation within this upward trend, with intermittent declines such as the drop to 65 days in mid-2023, but the overall pattern suggests lengthening inventory holding times over the observed periods.
- Average Receivable Collection Period
- The average receivable collection period demonstrates more variability without a clear long-term trend. It oscillates between the high 30s and low 50s days throughout the periods. Notable reductions occur around early 2024 and early 2025, reaching values as low as 38 days, contrasting with intermittent peaks in the low 50s during the middle of the timeline.
- Average Payables Payment Period
- The average payables payment period increases initially, reaching a peak near 90 days in late 2020, followed by a general decline toward the end of 2022, bottoming around 69-71 days. Afterward, it rises steadily again, peaking at 78 days in late 2024. This suggests an effort to initially extend payment terms, then a tightening before again lengthening payment durations near the end of the data range.
- Cash Conversion Cycle
- The cash conversion cycle, reflecting the net time for converting resource inputs into cash flows, starts at relatively low values around 19 days at the end of 2020, increases steadily thereafter to peak at 53 days in early 2023, and then decreases slightly to fluctuate around the high 30s to mid-40s toward the end of 2024 and into early 2025. This pattern implies a temporary lengthening of the cash conversion process before some improvement in efficiency is observed, though the cycle remains longer than initial values.