DXP Enterprises Inc (DXPE)
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 | 30.21 | 32.29 | 34.95 | 46.89 | 48.80 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 30.21 | 32.29 | 34.95 | 46.89 | 48.80 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.21 + — – —
= 30.21
The cash conversion cycle of DXP Enterprises Inc has shown a steady improvement over the years, decreasing from 48.80 days as of December 31, 2020, to 30.21 days as of December 31, 2024. This indicates that the company has been managing its cash flow more efficiently and effectively over time. A shorter cash conversion cycle suggests that DXP Enterprises is taking less time to convert its investments in inventory and other resources into cash from sales, which is a positive sign of operational efficiency. The trend towards a shorter cash conversion cycle is favorable as it enables the company to have quicker access to cash and potentially improve its overall liquidity position.
Peer comparison
Dec 31, 2024