CDW Corp (CDW)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 13.47 | 14.58 | 15.32 | 19.62 | 18.18 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 13.47 | 14.58 | 15.32 | 19.62 | 18.18 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 13.47 + — – —
= 13.47
The cash conversion cycle of CDW Corp has shown a decreasing trend from 18.18 days as of December 31, 2020, to 13.47 days as of December 31, 2024. This indicates that the company has been able to more efficiently convert its investments in inventory and accounts receivable into cash over the years. A shorter cash conversion cycle suggests that CDW Corp is managing its working capital effectively, which can lead to improved liquidity and financial performance. Overall, the declining trend in the cash conversion cycle is a positive indicator of the company's operational efficiency and financial management.
Peer comparison
Dec 31, 2024