The Chefs Warehouse Inc (CHEF)
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 23, 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 | 31.17 | 33.95 | 31.72 | 28.31 | 30.95 | 35.61 | 35.78 | 36.62 | 35.38 | 30.02 | 30.73 | 28.42 | 30.06 | 39.47 | 43.79 | 44.09 | 40.55 | 34.42 | 33.08 | 38.96 |
| Days of sales outstanding (DSO) | days | 35.36 | 35.63 | 35.09 | 34.67 | 35.96 | 38.57 | 39.45 | 36.33 | 37.14 | 32.36 | 34.77 | 31.60 | 36.43 | 38.04 | 40.54 | 36.26 | 32.10 | 29.59 | 27.73 | 32.99 |
| Number of days of payables | days | 26.31 | 23.43 | 22.52 | 19.06 | 21.81 | 23.87 | 24.28 | 22.65 | 23.53 | 22.51 | 24.46 | 22.64 | 24.61 | 32.39 | 38.44 | 33.36 | 28.26 | 25.93 | 20.84 | 27.76 |
| Cash conversion cycle | days | 40.21 | 46.14 | 44.29 | 43.92 | 45.10 | 50.31 | 50.95 | 50.31 | 48.99 | 39.87 | 41.04 | 37.38 | 41.88 | 45.12 | 45.89 | 46.99 | 44.39 | 38.07 | 39.97 | 44.19 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.17 + 35.36 – 26.31
= 40.21
The cash conversion cycle of The Chefs Warehouse Inc has exhibited some fluctuations over the reported periods. The cycle represents the time it takes for the company to convert its investments in inventory into cash flows from sales.
From March 31, 2020, to June 30, 2020, the cycle decreased from 44.19 days to 39.97 days, signaling an improvement in efficiency. However, from June 30, 2020, to December 31, 2020, the cycle increased to 44.39 days, indicating a slowdown in the conversion of inventory into cash.
Subsequently, the cycle fluctuated within the range of 37.38 to 50.95 days from March 31, 2021, to June 30, 2023, which may suggest challenges in managing working capital effectively. Notably, there was a substantial increase in the cycle to 50.95 days by June 30, 2023, signifying a longer time to convert inventory to cash.
However, from September 30, 2023, to December 31, 2024, the cycle gradually decreased to 40.21 days, showing improvements in managing the cash conversion process more efficiently.
Overall, The Chefs Warehouse Inc's cash conversion cycle has demonstrated variability, with periods of both improvement and challenges in effectively converting inventory investments into cash inflows. Monitoring and managing this cycle consistently is crucial for optimizing cash flow operations and overall financial performance.
Peer comparison
Dec 31, 2024