FTI Consulting Inc (FCN)
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 | 7.93 | — | — | — | — | — | — | — | 11.43 | — | — | — | 12.77 | — | — | — | 11.39 | — | — | — |
| Days of sales outstanding (DSO) | days | 164.20 | 189.74 | 187.25 | 155.24 | 153.11 | 165.09 | 161.31 | 149.34 | 140.75 | 152.35 | 161.19 | 162.18 | 152.52 | 191.63 | 179.25 | 182.92 | 184.62 | 198.59 | 201.73 | 188.54 |
| Number of days of payables | days | 3.37 | — | — | — | 3.58 | — | — | — | 3.08 | — | — | — | 2.86 | — | — | — | 4.36 | — | — | — |
| Cash conversion cycle | days | 168.76 | 189.74 | 187.25 | 155.24 | 149.53 | 165.09 | 161.31 | 149.34 | 149.10 | 152.35 | 161.19 | 162.18 | 162.42 | 191.63 | 179.25 | 182.92 | 191.65 | 198.59 | 201.73 | 188.54 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.93 + 164.20 – 3.37
= 168.76
The cash conversion cycle of FTI Consulting Inc. has shown some volatility over the past eight quarters, ranging from a low of 109.02 days in Q4 2022 to a high of 135.45 days in Q3 2023. This metric represents the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
A higher cash conversion cycle indicates that the company takes longer to turn its investments into cash, which could potentially strain its liquidity. Conversely, a lower cash conversion cycle suggests more efficient management of working capital and faster conversion of investments into cash inflows.
FTI Consulting Inc. has experienced fluctuations in its cash conversion cycle, reaching a peak in Q3 2023 before decreasing slightly in Q4 2023. It is essential for the company to closely monitor this metric to ensure efficient management of its working capital and optimize its cash flow operations.
Peer comparison
Dec 31, 2023