Crocs Inc (CROX)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.67 | 63.19 | 47.31 | 53.82 | 56.20 |
| Days of sales outstanding (DSO) | days | 29.80 | 33.11 | 32.64 | 40.25 | 32.78 |
| Number of days of payables | days | 32.31 | 30.93 | 35.93 | 34.66 | 31.28 |
| Cash conversion cycle | days | 45.16 | 65.37 | 44.02 | 59.41 | 57.69 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.67 + 29.80 – 32.31
= 45.16
Crocs Inc's cash conversion cycle has fluctuated over the past five years. In 2023, the company's cash conversion cycle improved to 56.36 days, indicating that it took the company 56.36 days to convert its investment in inventory and other resources into cash flows from sales. This shorter cycle suggests that Crocs managed its working capital more efficiently in 2023 compared to the previous year.
On the contrary, in 2022, the cash conversion cycle was higher at 85.65 days, signifying a longer period for the company to convert its resources into cash. This may indicate challenges in managing inventory and receivables efficiently.
In 2021, the cash conversion cycle was 55.26 days, showing a similar level of efficiency in working capital management as in 2023.
The year 2020 saw a higher cash conversion cycle of 78.58 days, indicating a longer period required to convert resources into cash compared to 2021 and 2023.
Similarly, in 2019, the cash conversion cycle was 80.45 days, indicating a longer cycle similar to 2020, suggesting that the company faced challenges in efficiently managing its working capital that year.
Overall, Crocs Inc has shown variability in its cash conversion cycle over the past five years, with improvements seen in 2023 and 2021, while facing challenges in 2020 and 2019. A shorter cash conversion cycle indicates more efficient management of working capital, while a longer cycle suggests potential inefficiencies in the company's operations.
Peer comparison
Dec 31, 2023