DXP Enterprises Inc (DXPE)
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 | 30.21 | 33.18 | 33.41 | 33.96 | 32.41 | 32.53 | 32.97 | 35.36 | 34.95 | 49.29 | 48.59 | 48.85 | 46.89 | 52.10 | 53.82 | 55.26 | 48.80 | 56.00 | 56.59 | 53.36 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 30.21 | 33.18 | 33.41 | 33.96 | 32.41 | 32.53 | 32.97 | 35.36 | 34.95 | 49.29 | 48.59 | 48.85 | 46.89 | 52.10 | 53.82 | 55.26 | 48.80 | 56.00 | 56.59 | 53.36 |
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 fluctuating trends over the years. It is a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
From March 31, 2020, to June 30, 2021, the cash conversion cycle ranged from 53.36 days to 56.59 days, indicating that the company took around 53 to 57 days to convert its investments into cash flow. This period was relatively stable with only minor fluctuations.
However, from September 30, 2021, to December 31, 2024, there was a noticeable improvement in the cash conversion cycle, with a decrease from 52.10 days to 30.21 days. This reduction implies that DXP Enterprises Inc managed its working capital more efficiently during this period, accelerating the conversion of inventory into cash.
The steady decline in the cash conversion cycle from September 2021 onwards could suggest that the company streamlined its operations, improved inventory management, and enhanced collection processes, resulting in a shorter cash conversion cycle. This improvement signifies enhanced liquidity and potentially better financial health for DXP Enterprises Inc.
Peer comparison
Dec 31, 2024