ExlService Holdings Inc (EXLS)
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 | — | — | 1.47 | 13.61 | 9.34 |
| Days of sales outstanding (DSO) | days | 60.39 | 69.46 | 67.00 | 64.38 | 81.23 |
| Number of days of payables | days | 1.30 | 1.33 | 2.33 | 2.13 | 3.01 |
| Cash conversion cycle | days | 59.09 | 68.14 | 66.13 | 75.86 | 87.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 60.39 – 1.30
= 59.09
The Cash Conversion Cycle (CCC) of ExlService Holdings Inc has shown a decreasing trend over the years, indicating improvements in the company's working capital management efficiency.
As of December 31, 2020, the CCC stood at 87.57 days, reflecting the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2024, the CCC decreased to 59.09 days, further demonstrating that the company has been able to optimize its operating cycle, reduce inventory holding periods, and speed up the collection of receivables.
This overall improvement in the CCC suggests that ExlService Holdings Inc has been effective in managing its working capital components, enhancing liquidity, and potentially increasing profitability by reducing the time it takes to convert investments into cash inflows. The company's ability to sustain this trend will be crucial in maintaining its financial health and competitive position in the market.
Peer comparison
Dec 31, 2024