Comfort Systems USA Inc (FIX)
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 | 3.88 | 3.88 | 4.75 | 5.75 | 5.66 | 4.86 | 3.93 | 3.72 | 3.79 | 4.36 | 3.86 | 3.37 | 3.18 | 3.07 | 3.04 | 2.51 | 2.13 | 1.99 | 1.91 | 1.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 3.88 | 3.88 | 4.75 | 5.75 | 5.66 | 4.86 | 3.93 | 3.72 | 3.79 | 4.36 | 3.86 | 3.37 | 3.18 | 3.07 | 3.04 | 2.51 | 2.13 | 1.99 | 1.91 | 1.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.88 + — – —
= 3.88
The cash conversion cycle of Comfort Systems USA Inc has shown fluctuations over the reported periods from March 31, 2020, to December 31, 2024. The trend of the cash conversion cycle indicates the efficiency of the company in managing its working capital.
From March 31, 2020, to June 30, 2021, the cash conversion cycle showed a consistent increase, reaching its peak at 3.07 days by September 30, 2021. This increase could imply a lengthening of the company's operating cycle, potentially signaling delays in converting resources into cash.
However, from September 30, 2021, to December 31, 2024, the cash conversion cycle fluctuated within a narrower range, indicating some stabilization in the company's working capital management. Notably, there was a significant decrease in the cash conversion cycle from March 31, 2024, to June 30, 2024, possibly indicating efficiency improvements in managing the conversion of cash resources during this period.
Overall, the trend in Comfort Systems USA Inc's cash conversion cycle suggests varying levels of efficiency in managing working capital and converting resources into cash over the observed periods. It would be important for the company to continue monitoring and improving its working capital management practices to ensure optimal cash flow operations in the future.
Peer comparison
Dec 31, 2024