Ecolab Inc (ECL)
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 | 60.08 | 59.84 | 74.10 | 71.50 | 67.93 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 60.08 | 59.84 | 74.10 | 71.50 | 67.93 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.08 + — – —
= 60.08
The cash conversion cycle of Ecolab Inc has shown fluctuations over the past five years. As of December 31, 2020, the cash conversion cycle stood at 67.93 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
By the end of December 31, 2021, the cash conversion cycle extended to 71.50 days, suggesting a slight increase in the time it takes for Ecolab Inc to realize cash from its operations.
Furthermore, as of December 31, 2022, the cash conversion cycle continued to lengthen to 74.10 days, indicating potential challenges in managing working capital efficiency.
However, by December 31, 2023, there was a significant improvement in the cash conversion cycle, which reduced to 59.84 days, signaling enhanced efficiency in converting resources into cash flows.
Moreover, by the end of December 31, 2024, the cash conversion cycle remained relatively stable at 60.08 days, reflecting a consistent performance in managing the company's working capital and operational cash flows.
Overall, fluctuations in the cash conversion cycle of Ecolab Inc highlight the company's ability to efficiently manage its working capital and optimize its cash flow conversion process over the five-year period.
Peer comparison
Dec 31, 2024