Expeditors International of Washington, Inc. (EXPD)

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	—	—	6.31	25.10	14.19
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	0.00	0.00	6.31	25.10	14.19

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

Expeditors International of Washington, Inc.'s cash conversion cycle has shown variability over the years. In 2020, the company had a relatively short cash conversion cycle of 14.19 days, indicating efficient management of working capital. However, by December 31, 2021, the cash conversion cycle had increased to 25.10 days, possibly due to extended payment terms or slower collection of receivables.

The trend reversed significantly in 2022, with the cash conversion cycle dropping to just 6.31 days, suggesting improved cash flow efficiency and quicker conversion of inventory and receivables into cash. By December 31, 2023, the cash conversion cycle was reported as 0.00 days, indicating that the company was able to collect cash from customers and convert inventory to sales almost immediately.

This trend continued into 2024, with the cash conversion cycle remaining at 0.00 days. A cash conversion cycle of zero days suggests that Expeditors International of Washington, Inc. is operating at peak efficiency, with excellent working capital management and the ability to quickly convert sales and inventory into cash.

Overall, the data indicates fluctuations in Expeditors International of Washington, Inc.'s cash conversion cycle over the years, showcasing both challenges and successes in managing working capital efficiently.