CSX Corporation (CSX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 16.44 | 16.41 | 16.46 | 17.88 | 17.83 | 17.15 | 17.04 | 15.70 | 13.73 | 15.09 | 16.47 | 16.37 | 16.77 | 16.02 | 16.24 | 17.39 | 17.72 | 14.51 | 13.65 | 13.54 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 16.44 | 16.41 | 16.46 | 17.88 | 17.83 | 17.15 | 17.04 | 15.70 | 13.73 | 15.09 | 16.47 | 16.37 | 16.77 | 16.02 | 16.24 | 17.39 | 17.72 | 14.51 | 13.65 | 13.54 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.44 + — – —
= 16.44
CSX Corporation's cash conversion cycle has displayed fluctuations over the periods reported. The cycle reflects the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
From March 31, 2020, to December 31, 2022, the cash conversion cycle ranged from a low of 13.54 days to a high of 17.72 days. This indicates that CSX Corporation efficiently managed its working capital during this period. However, in the subsequent quarters up to June 30, 2024, the cycle remained relatively stable between 15 to 17 days, suggesting a slightly slower conversion of resources into cash.
The overall trend shows that CSX Corporation has been able to maintain a relatively efficient cash conversion cycle, indicating effective management of its inventory and receivables. However, there may be room for improvement in terms of accelerating the cash conversion process to enhance liquidity and operational efficiency further. Keeping a close eye on the cash conversion cycle will be crucial for sustaining financial health and optimizing working capital management.
Peer comparison
Dec 31, 2024