National Vision Holdings Inc (EYE)
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 | 20.14 | 23.09 | 23.67 | 24.99 | 28.27 |
| Days of sales outstanding (DSO) | days | 14.90 | 14.53 | 9.77 | 12.73 | 9.67 |
| Number of days of payables | days | 11.35 | 12.24 | 12.31 | 14.57 | 9.04 |
| Cash conversion cycle | days | 23.69 | 25.38 | 21.13 | 23.16 | 28.90 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.14 + 14.90 – 11.35
= 23.69
The cash conversion cycle of National Vision Holdings Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 23.69 days from 25.38 days in 2022, indicating an improvement in managing its working capital. This trend aligns with the efficient management of cash, inventory, and accounts receivable.
In 2021, the cash conversion cycle was at its lowest at 21.13 days, suggesting that the company was able to convert its inventory to cash more quickly and efficiently. However, in 2019, the cash conversion cycle was at its highest at 28.90 days, indicating a longer time taken to convert investments in inventory back to cash.
Overall, National Vision Holdings Inc has shown improvements in its cash conversion cycle over the years, signifying better working capital management and operational efficiency. This trend suggests that the company has been effective in managing its cash flow, inventory levels, and accounts receivable, ultimately enhancing its financial performance.
Peer comparison
Dec 31, 2023