Expeditors International of Washington Inc (EXPD)

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	—	6.32	25.16	13.41	6.71
Days of sales outstanding (DSO)	days	60.28	45.13	84.23	72.27	58.78
Number of days of payables	days	39.20	27.23	51.29	46.54	37.44
Cash conversion cycle	days	21.07	24.23	58.10	39.13	28.04

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 60.28 – 39.20
= 21.07

The cash conversion cycle of Expeditors International Of Washington, Inc. has fluctuated over the past five years, indicating changes in its operating efficiency and liquidity management.

In 2023, the company's cash conversion cycle decreased to 8.25 days from 12.88 days in 2022. This improvement suggests that Expeditors International Of Washington, Inc. was able to convert its inventory, accounts receivable, and accounts payable into cash more quickly during 2023, potentially enhancing its working capital management.

Comparing to 2021 and 2020, the cash conversion cycle was significantly lower in 2023, reflecting a more efficient cash flow conversion process. However, the cycle was higher than in 2019, indicating a slight deterioration in the efficiency of cash conversion.

Overall, the trend in Expeditors International Of Washington, Inc.'s cash conversion cycle shows variability over the years, with some improvements in recent years but with fluctuations. It is essential for the company to continue monitoring and optimizing its inventory turnover, accounts receivable collection, and payment practices to enhance its cash conversion cycle efficiency and overall financial performance.