Comfort Systems USA Inc (FIX)
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 | 3.89 | 5.67 | 3.79 | 3.18 | 2.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 3.89 | 5.67 | 3.79 | 3.18 | 2.13 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.89 + — – —
= 3.89
Comfort Systems USA Inc's cash conversion cycle has experienced fluctuations over the past five years.
In December 2020, the company's cash conversion cycle was at its lowest point at 2.13 days, indicating that Comfort Systems USA Inc was able to convert its investments in inventory and accounts receivable back into cash relatively quickly. However, this figure increased in the following years. By December 2023, the cash conversion cycle reached 5.67 days, suggesting a slower turnaround time in converting investments into cash.
In December 2024, there was a slight improvement in the cash conversion cycle, dropping to 3.89 days, but it remains higher than the initial levels observed in 2020. This indicates that Comfort Systems USA Inc may be facing challenges in efficiently managing its inventory and/or collecting receivables.
Overall, the trend in the cash conversion cycle implies that the company may need to focus on optimizing its working capital management to improve cash flows and liquidity in the future.
Peer comparison
Dec 31, 2024