Dorman Products Inc (DORM)
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 | 214.83 | 186.96 | 235.96 | 220.07 | 153.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 214.83 | 186.96 | 235.96 | 220.07 | 153.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 214.83 + — – —
= 214.83
The cash conversion cycle of Dorman Products Inc has shown fluctuations over the years according to the data provided:
- As of December 31, 2020, the cash conversion cycle was 153.65 days.
- By December 31, 2021, it had increased significantly to 220.07 days.
- The trend continued with a further rise to 235.96 days by December 31, 2022.
- However, by December 31, 2023, there was a decrease in the cash conversion cycle to 186.96 days.
- Subsequently, by December 31, 2024, the cash conversion cycle increased again to 214.83 days.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company takes more time to collect cash from sales and convert it back into cash or reduce outstanding liabilities.
The fluctuations in Dorman Products Inc's cash conversion cycle suggest potential inefficiencies in managing its inventories, accounts receivable, and payables. It is crucial for the company to monitor and optimize its cash conversion cycle to ensure adequate liquidity and efficient working capital management.
Peer comparison
Dec 31, 2024