Corsair Gaming Inc (CRSR)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.72 | 65.22 | 78.32 | 66.69 |
| Days of sales outstanding (DSO) | days | 63.32 | 62.55 | 55.84 | 62.96 |
| Number of days of payables | days | 79.65 | 58.22 | 61.99 | 88.42 |
| Cash conversion cycle | days | 63.39 | 69.55 | 72.17 | 41.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.72 + 63.32 – 79.65
= 63.39
The cash conversion cycle of Corsair Gaming Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 63.39 days from 69.55 days in 2022, indicating an improvement in managing cash flow. This reduction suggests that Corsair Gaming Inc was able to convert its inventory into sales and subsequently into cash more efficiently in 2023.
Comparing the data further, the cash conversion cycle in 2023 was lower than in both 2021 and 2019, implying that the company has made progress in managing its working capital and converting it into cash within a shorter period. However, the cash conversion cycle in 2023 was still higher than in 2020, when it was 41.23 days, reflecting that there is room for further optimization in managing the company's working capital efficiency.
Overall, the decreasing trend in the cash conversion cycle from 2021 to 2023 indicates that Corsair Gaming Inc has been successful in improving its cash management and working capital efficiency. However, ongoing efforts may be required to sustain and further enhance this efficiency in the future.
Peer comparison
Dec 31, 2023