The Chefs Warehouse Inc (CHEF)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 37.76 | 37.07 | 38.00 | 36.05 |
| Days of sales outstanding (DSO) | days | 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 | 40.48 | 38.86 | 38.06 | 37.81 |
| Number of days of payables | days | 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 | 28.64 | 24.24 | 26.91 | 24.80 |
| Cash conversion cycle | days | 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 | 49.60 | 51.70 | 49.15 | 49.06 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.95 + 35.96 – 21.81
= 45.10
The cash conversion cycle of The Chefs Warehouse Inc has displayed some fluctuations over the past few quarters. The company's cash conversion cycle, which represents the time it takes to convert invested resources into cash inflows, ranged from a low of 37.38 days to a high of 51.70 days.
In the most recent quarter, as of December 31, 2023, the cash conversion cycle was 45.10 days, showing a moderate increase compared to the previous quarter. This indicates that the company took approximately 45 days to convert its invested resources into cash inflows during that period.
Overall, over the analyzed period, The Chefs Warehouse Inc has experienced some variability in its cash conversion cycle, which could reflect shifts in its operating efficiency and management of working capital. It would be advisable for stakeholders to closely monitor this metric to understand how efficiently the company is managing its cash flows and working capital needs.
Peer comparison
Dec 31, 2023