EPAM Systems Inc (EPAM)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 3.59 | 3.43 | 3.65 | 2.15 | 1.92 |
| Cash conversion cycle | days | -3.59 | -3.43 | -3.65 | -2.15 | -1.92 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 3.59
= -3.59
EPAM Systems Inc's cash conversion cycle has shown fluctuating trends over the past five years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales. A shorter cycle indicates better efficiency in managing working capital.
In 2023, the cash conversion cycle decreased slightly to 66.22 days compared to the previous year, which could indicate improved efficiency in managing inventory and collecting receivables. However, it is important to note that the cycle has been relatively stable over the period under review, with minor fluctuations.
Overall, EPAM Systems Inc's cash conversion cycle has demonstrated reasonable stability, suggesting that the company has been effectively managing its working capital to convert investments into cash flow in a timely manner. Continued monitoring of this metric will be essential to ensure sustained operational and financial efficiency.
Peer comparison
Dec 31, 2023