National Vision Holdings Inc (EYE)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.68 | 32.88 | 32.82 | 41.48 | 42.70 | 45.09 | 46.11 | 47.78 | 48.57 | 48.36 | 51.67 | 50.76 | 49.89 | 50.35 | 49.68 | 55.03 | 51.63 | 53.81 | 57.25 | 58.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 38.68 | 32.88 | 32.82 | 41.48 | 42.70 | 45.09 | 46.11 | 47.78 | 48.57 | 48.36 | 51.67 | 50.76 | 49.89 | 50.35 | 49.68 | 55.03 | 51.63 | 53.81 | 57.25 | 58.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.68 + — – —
= 38.68
The cash conversion cycle of National Vision Holdings Inc has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The company's cash conversion cycle decreased from 58.52 days on March 31, 2020, to 38.68 days on December 31, 2024. This improvement indicates that the company has been managing its working capital more efficiently over time. A lower cash conversion cycle implies that the company is able to sell its inventory more quickly, collect payments from customers faster, and pay suppliers at a more favorable pace.
The declining trend in the cash conversion cycle is a positive indicator for the company's liquidity and operational efficiency. It suggests that National Vision Holdings Inc has been able to optimize its inventory management, streamline its accounts receivable collection, and effectively negotiate payment terms with its suppliers.
Overall, the consistent reduction in the cash conversion cycle of National Vision Holdings Inc reflects the company's ability to enhance its cash flow generation and working capital management strategies, which can contribute to improved financial performance and sustainability in the long run.
Peer comparison
Dec 31, 2024