Church & Dwight Company Inc (CHD)
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 | 67.49 | 73.06 | 69.98 | 66.10 | 68.26 | 75.06 | 76.46 | 74.78 | 75.51 | 80.04 | 79.49 | 73.26 | 66.77 | 70.12 | 71.92 | 72.20 | 67.43 | 70.85 | 67.32 | 59.36 |
| Days of sales outstanding (DSO) | days | 35.91 | 33.48 | 35.77 | 33.51 | 32.77 | 29.13 | 29.84 | 28.45 | 28.65 | 26.91 | 27.93 | 28.31 | 28.52 | 29.03 | 27.93 | 29.81 | 29.73 | 28.68 | 27.38 | 28.81 |
| Number of days of payables | days | 77.59 | 78.32 | 75.10 | 71.87 | 70.19 | 77.31 | 76.72 | 74.58 | 77.86 | 77.70 | 80.00 | 80.14 | 82.79 | 78.34 | 73.35 | 73.00 | 80.05 | 82.68 | 76.36 | 69.02 |
| Cash conversion cycle | days | 25.81 | 28.23 | 30.65 | 27.73 | 30.85 | 26.88 | 29.58 | 28.65 | 26.31 | 29.24 | 27.43 | 21.44 | 12.50 | 20.81 | 26.51 | 29.00 | 17.11 | 16.85 | 18.33 | 19.15 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.49 + 35.91 – 77.59
= 25.81
The cash conversion cycle of Church & Dwight Company Inc has varied over the period from March 31, 2020, to December 31, 2024. The trend indicates fluctuations in the efficiency of the company's cash management and working capital cycle.
The company's cash conversion cycle decreased optimistically from 19.15 days on March 31, 2020, to 12.50 days on December 31, 2021. This suggests that Church & Dwight was able to efficiently convert its investments in raw materials and inventory into cash during this period.
However, there was an unexpected increase in the cash conversion cycle from March 31, 2021, to June 30, 2022, with the cycle reaching 30.65 days on June 30, 2024. This prolonged cycle may indicate challenges in managing accounts receivable, inventory levels, or payables during these quarters.
Overall, the company showed a mixed performance in managing its cash conversion cycle over the period under review. It is important for Church & Dwight to closely monitor its working capital components to improve efficiency and maintain a healthy cash conversion cycle in the future.
Peer comparison
Dec 31, 2024