PC Connection Inc (CNXN)
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 | 16.44 | 18.56 | 20.24 | 24.52 | 25.25 | 25.31 | 26.65 | 29.09 | 26.85 | 23.78 | 23.45 | 20.86 | 20.34 | 19.21 | 23.05 | 17.90 | 16.74 | 16.96 | 24.17 | 19.76 |
| Days of sales outstanding (DSO) | days | 85.04 | 75.25 | 73.97 | 74.08 | 78.00 | 73.93 | 74.18 | 76.04 | 82.67 | 77.19 | 79.53 | 80.49 | 95.49 | 81.70 | 60.21 | 61.28 | 78.46 | 62.14 | 66.68 | 58.49 |
| Number of days of payables | days | 34.90 | 34.51 | 35.14 | 29.41 | 28.15 | 30.68 | 33.25 | 33.66 | 36.63 | 29.43 | 36.23 | 30.66 | 38.53 | 40.39 | 34.37 | 28.74 | 31.65 | 26.61 | 35.75 | 29.31 |
| Cash conversion cycle | days | 66.57 | 59.29 | 59.08 | 69.19 | 75.10 | 68.56 | 67.58 | 71.47 | 72.88 | 71.53 | 66.75 | 70.69 | 77.29 | 60.52 | 48.89 | 50.44 | 63.55 | 52.50 | 55.10 | 48.94 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.44 + 85.04 – 34.90
= 66.57
The cash conversion cycle of PC Connection, Inc. has been relatively stable over the past eight quarters, ranging between 56.49 and 70.77 days. This metric provides insight into how long it takes the company to convert its investments in inventory and other resources into cash inflows from sales.
The trend indicates that in the most recent quarter, Q4 2023, the company took approximately 56.49 days to complete this cycle, similar to the previous quarter. However, in Q1 2023, the cycle extended to 68.37 days, suggesting a temporary delay in converting assets into cash during that period.
Overall, PC Connection, Inc. should aim to manage its cash conversion cycle efficiently to optimize its working capital position and liquidity. By closely monitoring this metric and identifying ways to streamline processes, the company can enhance its operational efficiency and financial performance over time.
Peer comparison
Dec 31, 2023