Equifax Inc (EFX)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	12.13	12.92	14.46	12.06	12.74	14.07	13.79	10.45	11.78	12.98	14.33	11.01	13.39	13.60	13.67	9.31	12.80	15.66	21.10
Days of sales outstanding (DSO)	days	66.03	72.11	70.58	69.08	63.41	61.59	65.20	63.52	55.61	54.15	55.98	60.57	57.22	58.04	59.63	62.55	56.70	56.21	55.35	56.63
Number of days of payables	days	16.51	16.29	12.89	12.93	22.51	15.60	17.40	17.46	20.40	18.82	17.14	17.86	16.83	17.32	16.77	19.49	15.66	18.70	25.09	33.67
Cash conversion cycle	days	49.52	67.95	70.61	70.61	52.95	58.73	61.86	59.84	45.66	47.11	51.81	57.03	51.40	54.11	56.45	56.74	50.34	50.31	45.91	44.07

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 66.03 – 16.51
= 49.52

The cash conversion cycle of Equifax, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 32.07 days, which indicates that it took approximately 32 days for Equifax to convert its investments in inventory and other resources into cash generated from sales. This was a slight improvement from Q3 2023, where the cash conversion cycle was 38.42 days.

Comparing Q4 2023 to the same period in the previous year (Q4 2022), we see that the cash conversion cycle has increased significantly from 19.07 days to 32.07 days. This suggests that Equifax may be taking longer to convert its resources into cash, which could potentially indicate inefficiencies in managing its working capital.

Overall, the trend in Equifax's cash conversion cycle in recent quarters shows some level of volatility and potential challenges in efficiently managing its cash flow and working capital. Further analysis and investigation into the underlying factors driving these changes would be necessary to fully understand the implications for the company's financial performance and liquidity management.