Columbia Sportswear Company (COLM)
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 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 149.80 | 174.42 | 175.63 | 128.92 | 155.01 | 178.20 | 235.20 | 195.48 | 214.15 | 225.19 | 217.90 | 163.71 | 155.60 | 184.39 | 177.66 | 149.28 | 158.99 | 216.46 | 209.89 | 139.93 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 149.80 | 174.42 | 175.63 | 128.92 | 155.01 | 178.20 | 235.20 | 195.48 | 214.15 | 225.19 | 217.90 | 163.71 | 155.60 | 184.39 | 177.66 | 149.28 | 158.99 | 216.46 | 209.89 | 139.93 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 149.80 + — – —
= 149.80
The cash conversion cycle measures how efficiently a company manages its working capital by analyzing the time it takes to convert its investments in inventory into cash receipts from sales. For Columbia Sportswear Company, the cash conversion cycle has shown fluctuations over the periods provided in the data.
In March 2020, the cash conversion cycle was at 139.93 days, indicating that it took the company approximately 140 days to convert its investments in inventory into cash. Subsequently, the cycle increased significantly to 209.89 days by June 2020, indicating a slowdown in cash conversion efficiency. This trend continued to September 2020 and December 2020, with days reaching 216.46 and 158.99, respectively.
However, starting from March 2021, there was an improvement in the cash conversion cycle as it decreased to 149.28 days. This trend continued with variations until December 2024 where it decreased to 149.80 days. Notable fluctuations were observed throughout the periods, showing the company's ability to efficiently manage its working capital flow, with both longer and shorter cycles.
Analyzing the cash conversion cycle helps identify areas where Columbia Sportswear Company may need to improve its operational efficiency to optimize its cash flow and working capital management. By closely monitoring and managing this cycle, the company can better understand its liquidity positions and work towards enhancing its overall financial performance.
Peer comparison
Dec 31, 2024