CSX Corporation (CSX)
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 | 16.43 | 17.83 | 13.73 | 16.76 | 17.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 16.43 | 17.83 | 13.73 | 16.76 | 17.72 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.43 + — – —
= 16.43
The cash conversion cycle of CSX Corporation has shown fluctuations over the past five years. In 2020, the company's cash conversion cycle was 17.72 days, which decreased slightly to 16.76 days in 2021. However, in 2022, there was a significant improvement as the cycle reduced to 13.73 days. Subsequently, in 2023, there was a slight increase to 17.83 days, followed by a decrease to 16.43 days in 2024.
Overall, the trend in CSX Corporation's cash conversion cycle indicates some variability in the efficiency of its cash conversion processes. The company was able to optimize its working capital management in 2022 with a notable reduction in the cycle, but experienced some fluctuations in subsequent years. It is essential for the company to continue monitoring and managing its cash conversion cycle effectively to maintain and improve its liquidity position and operational efficiency.
Peer comparison
Dec 31, 2024