Clean Harbors Inc (CLH)
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 | 26.63 | 25.56 | 27.06 | 27.15 | 28.04 | 26.08 | 26.33 | 27.56 | 28.70 | 28.82 | 28.69 | 31.08 | 30.57 | 12.49 | 11.90 | 11.12 | 28.22 | 11.27 | 10.83 | 10.55 |
| Days of sales outstanding (DSO) | days | 66.50 | 69.07 | 67.10 | 66.25 | 68.12 | 75.08 | 80.00 | 79.05 | 76.08 | 74.90 | 73.54 | 73.64 | 71.10 | 68.34 | 62.90 | 69.06 | 69.10 | 69.03 | 68.94 | 67.22 |
| Number of days of payables | days | 36.73 | 34.05 | 31.09 | 35.99 | 38.53 | 36.95 | 39.08 | 41.04 | 41.19 | 36.11 | 33.14 | 30.21 | 27.15 | 30.32 | 25.56 | 34.50 | 39.21 | 36.75 | 33.94 | 32.59 |
| Cash conversion cycle | days | 56.40 | 60.58 | 63.06 | 57.40 | 57.62 | 64.21 | 67.25 | 65.58 | 63.59 | 67.60 | 69.09 | 74.51 | 74.51 | 50.52 | 49.23 | 45.67 | 58.11 | 43.54 | 45.83 | 45.17 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.63 + 66.50 – 36.73
= 56.40
The cash conversion cycle of Clean Harbors, Inc. has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 73.39 days, which decreased slightly in Q2 2022 to 75.14 days before improving in Q3 2022 to 71.62 days. However, in Q4 2022, the cash conversion cycle increased to 63.18 days before rising in Q1 2023 to 65.20 days and then further increasing in Q2 2023 to 70.55 days.
Although there was a slight improvement in Q3 2023 with a cash conversion cycle of 67.71 days, Q4 2023 witnessed the best performance with a cash conversion cycle of 61.51 days, indicating that the company became more efficient in converting its resources into cash during that quarter.
Overall, Clean Harbors, Inc. has experienced fluctuations in its cash conversion cycle over the past eight quarters, with periods of improvement and slight increases along the way. Efficient management of working capital and operational processes will be crucial for the company to maintain a healthy cash conversion cycle in the future.
Peer comparison
Dec 31, 2023