Exponent Inc (EXPO)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 113.80 | 122.58 | 119.94 | 120.29 | 120.97 | 121.33 | — | — | 109.48 | — | — | — | 101.83 | — | — | — | — | — | — | — |
| Number of days of payables | days | 4.64 | — | — | — | 10.69 | — | — | — | 3.89 | — | — | — | 4.44 | — | — | — | 6.06 | — | — | — |
| Cash conversion cycle | days | 109.17 | 122.58 | 119.94 | 120.29 | 110.27 | 121.33 | 0.00 | 0.00 | 105.60 | 0.00 | 0.00 | 0.00 | 97.39 | 0.00 | 0.00 | 0.00 | -6.06 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 113.80 – 4.64
= 109.17
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates more efficient management of working capital.
Based on the data provided for Exponent Inc, we observe fluctuations in the cash conversion cycle over the reported periods. In the latest period of December 31, 2023, the cash conversion cycle stands at 109.17 days, which is slightly lower compared to the previous quarter. However, it is noteworthy that the company has shown an improvement in managing its working capital over the last year.
The company's cash conversion cycle was notably shorter in December 2020 and March 2021 at 97.39 days, indicating better efficiency in converting inventory and receivables into cash during those periods. Moreover, the negative cash conversion cycle reported in December 2019 suggests that the company was able to generate cash from sales before having to pay suppliers, which is a favorable sign of efficient working capital management.
Overall, Exponent Inc's cash conversion cycle has shown variability over the past few quarters, with some periods demonstrating increased efficiency in working capital management. This metric should be monitored closely to ensure the company maintains optimal levels of liquidity and operational efficiency.
Peer comparison
Dec 31, 2023