DXP Enterprises Inc (DXPE)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.25 | 26.39 | 33.74 | 310.10 | 38.83 |
| Days of sales outstanding (DSO) | days | 69.91 | 81.31 | 76.09 | — | 55.04 |
| Number of days of payables | days | 22.54 | 26.23 | 26.03 | 207.17 | 22.94 |
| Cash conversion cycle | days | 71.62 | 81.46 | 83.80 | 102.94 | 70.92 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.25 + 69.91 – 22.54
= 71.62
The cash conversion cycle for DXP Enterprises Inc has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 71.62 days from 81.46 days in 2022, showing an improvement in the efficiency of its working capital management. This trend continued from 2021 when the cycle was 83.80 days which had increased compared to 2020 when it was 102.94 days. The most efficient performance was in 2019, with a cash conversion cycle of 70.92 days, slightly better than in 2023. Overall, the company has shown variability in managing its cash conversion cycle, with efforts to reduce the number of days it takes for the company to convert its resources into cash, showcasing an improvement in its operating efficiency.
Peer comparison
Dec 31, 2023