Crocs Inc (CROX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 41.58 | 47.67 | 63.19 | 47.31 | 53.82 |
| Days of sales outstanding (DSO) | days | 23.33 | 29.80 | 33.11 | 32.64 | 40.25 |
| Number of days of payables | days | 30.92 | 32.31 | 30.93 | 35.93 | 34.66 |
| Cash conversion cycle | days | 33.99 | 45.16 | 65.37 | 44.02 | 59.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.58 + 23.33 – 30.92
= 33.99
The cash conversion cycle of Crocs Inc has shown fluctuations over the past five years. In December 2020, the cash conversion cycle was 59.41 days, indicating the time it takes for the company to convert its investments in inventory and receivables into cash flow from sales. By December 2021, the cycle had improved to 44.02 days, suggesting more efficient management of inventory and receivables.
However, in December 2022, the cash conversion cycle increased to 65.37 days, signaling potential challenges in converting investments into cash efficiently. The cycle then decreased to 45.16 days by December 2023, showing a partial recovery in operational efficiency.
By December 2024, the cash conversion cycle further improved to 33.99 days, indicating stronger liquidity management and potentially quicker cash flow generation from sales. Overall, the trend in the cash conversion cycle suggests varying levels of effectiveness in managing working capital and converting investments into cash over the five-year period.
Peer comparison
Dec 31, 2024