CDW Corp (CDW)
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 | 13.47 | 15.38 | 16.25 | 14.86 | 14.61 | 15.06 | 16.29 | 15.64 | 15.32 | 17.24 | 19.84 | 21.32 | 19.62 | 18.38 | 19.89 | 17.36 | 18.18 | 15.83 | 16.79 | 15.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 13.47 | 15.38 | 16.25 | 14.86 | 14.61 | 15.06 | 16.29 | 15.64 | 15.32 | 17.24 | 19.84 | 21.32 | 19.62 | 18.38 | 19.89 | 17.36 | 18.18 | 15.83 | 16.79 | 15.99 |
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 some fluctuations over the periods indicated. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory, sales, and accounts receivable into cash flows from customers.
From the data provided, we can observe that the cash conversion cycle ranged from a low of 13.47 days on December 31, 2024, to a high of 21.32 days on March 31, 2022. Generally, a lower cash conversion cycle indicates that the company is more efficient in managing its working capital and converting its assets into cash.
Over the periods analyzed, CDW Corp seems to have made improvements in managing its cash conversion cycle, as there is a downward trend in the number of days it takes to convert its investments into cash flows. This trend suggests that the company is effectively managing its inventory, sales, and accounts receivable to optimize its cash flow generation.
It is important for CDW Corp to continue monitoring and improving its cash conversion cycle to ensure efficient working capital management and liquidity. By streamlining processes and enhancing efficiency in converting assets into cash, the company can strengthen its financial position and support its overall performance and growth objectives.
Peer comparison
Dec 31, 2024