Equifax Inc (EFX)
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 | — | — | 22.51 | 19.97 | 21.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 22.51 | 19.97 | 21.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Equifax Inc decreased from 21.87 days at the end of 2020 to 19.97 days at the end of 2021, indicating an improvement in the company's ability to manage its working capital efficiently. However, the cycle increased to 22.51 days at the end of 2022 before dropping to 0.00 days at the end of both 2023 and 2024.
A decreasing cash conversion cycle generally suggests that the company is collecting cash from its sales faster, paying suppliers later, or managing its inventory more efficiently.
The sudden decrease to 0.00 days in 2023 and 2024 could be an anomaly or may indicate changes in the company's operations, such as improved accounts receivable collection or tighter inventory management, resulting in a quicker conversion of its investments in inventory and receivables into cash.
Overall, the trend in Equifax Inc's cash conversion cycle shows fluctuations but ultimately depicts a reduction in the time taken to convert its resources into cash over the period analyzed.