Church & Dwight Company Inc (CHD)

Cash conversion cycle

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 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 64.18 60.30 62.38 62.73
Days of sales outstanding (DSO) days 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 29.85 32.72 33.06 33.55
Number of days of payables days 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 72.78 69.63 72.94 68.27
Cash conversion cycle days 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 21.26 23.39 22.50 28.00

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 68.26 + 32.77 – 70.19
= 30.85

The cash conversion cycle is a measure of how efficiently a company is managing its working capital. It is calculated by adding the days inventory outstanding to the days sales outstanding and then subtracting the days payable outstanding. A lower number indicates a more efficient use of cash in the business operations.

Analyzing the data provided for Church & Dwight Co., Inc., we observed fluctuations in the cash conversion cycle over the last eight quarters. In Q4 2023, the company had a cash conversion cycle of 30.85 days, which increased from the previous quarter but remained relatively stable compared to the same quarter in the previous year.

The cash conversion cycle reached its lowest point in Q1 2022, with 21.44 days, which suggests the company was able to convert its investments in inventory back to cash relatively quickly during that period. However, this efficiency has decreased towards the end of 2023.

Overall, it is important for Church & Dwight Co., Inc. to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and maximize liquidity. Tracking changes in the cycle can provide valuable insights into the company's operational efficiency and effectiveness in managing working capital.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Church & Dwight Company Inc
CHD
30.85
Ecolab Inc
ECL
69.50
Procter & Gamble Company
PG
-20.21
Stepan Company
SCL
72.20