ArcBest Corp (ARCB)

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	—	4.36	—	—	—	6.23	6.82	8.43	8.33	6.80	—	9.63	—	7.31	9.03	10.63	10.06	10.37	10.14	11.24
Days of sales outstanding (DSO)	days	37.60	37.32	37.21	37.31	39.18	37.69	32.99	34.05	40.59	44.19	50.13	56.70	54.36	44.24	40.14	42.47	41.58	43.41	37.32	36.01
Number of days of payables	days	35.05	41.64	44.47	42.09	42.97	49.51	50.49	52.04	55.89	69.49	75.27	76.93	73.13	55.34	50.72	46.88	45.51	56.82	49.28	42.44
Cash conversion cycle	days	2.55	0.04	-7.26	-4.78	-3.79	-5.59	-10.68	-9.56	-6.96	-18.50	-25.14	-10.59	-18.76	-3.78	-1.54	6.23	6.13	-3.04	-1.83	4.81

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 37.60 – 35.05
= 2.55

The cash conversion cycle for ArcBest Corp has exhibited fluctuations over the past several quarters. From March 31, 2020, to December 31, 2020, the company's cash conversion cycle ranged from a low of -3.04 days to a high of 6.23 days. However, starting from June 30, 2021, the company's cash conversion cycle consistently remained negative, indicating an efficient management of cash, inventory, and accounts receivable.

Notably, by December 31, 2024, the cash conversion cycle had slightly increased to 2.55 days, suggesting a potential need for closer monitoring of the company's working capital management. Overall, ArcBest Corp's recent trend towards negative cash conversion cycles may indicate improved operational efficiency and liquidity.