Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 184

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 184
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234.3
    )
     
    $
    (728.6
    )

    Net cash used in financing activities
    $
    (343.4
    )
     
    $
    (725.6
    )
     
    $
    (120.9
    )

2024 compared to 2023

Net Cash Provided by Operating Activities – Our primary source of liquidity is our cash flow provided by operating activities, which is dependent on the level of net income and changes in working capital.  Our net cash provided by operating activities in 2024 increased by $125.6 to $1,156.2 as compared to $1,030.6 in 2023 primarily due to an increase in cash earnings (net income adjusted for non-cash items).  We measure working capital effectiveness based on our cash conversion cycle.  The following table presents our cash conversion cycle information for the years ended December 31, 2024 and 2023:

    As of

    December 31, 2024

    December 31, 2023

    Change

    Days of sales outstanding in accounts receivable ("DSO")
     
    34

    29

    5

    Days of inventory outstanding ("DIO")
     
    67

    70

    (3
    )

    Days of accounts payable outstanding ("DPO")
     
    73

    72

    (1
    )

    Cash conversion cycle
     
    28

    27

    1

Our cash conversion cycle (defined as the sum of DSO plus DIO less DPO) at December 31, 2024, which is calculated using a two period average method, increased one day from the prior year.  The change in cash conversion cycle is due to an increase in DSO primarily from a reduction in our accounts receivable factoring program in response to higher interest rates, partially offset with a decrease in DIO mainly from a reduction in inventory related to our discretionary brands and an increase in DPO primarily from agreeing to extended payment terms with some vendors.  We continue to focus on reducing our working capital requirements.

Net Cash Used in Investing Activities – Net cash used in investing activities during 2024 was $183.3, primarily reflecting property, plant and equipment additions of $179.8 and $19.9 for the Graphico Acquisition, partially offset by $14.0 of proceeds from the sale of assets (including