Comfort Systems USA Inc (FIX)
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 | 5.67 | 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 | 1.74 | 2.32 | 2.45 | 2.63 |
| Days of sales outstanding (DSO) | days | 10.79 | 14.79 | 3.82 | 2.61 | 425.66 | 6.86 | 6.19 | 7.16 | 447.92 | 2.80 | 3.83 | 3.82 | 400.94 | 4.58 | 2.66 | 2.35 | 355.79 | 2.78 | 3.07 | 1.27 |
| Number of days of payables | days | 36.36 | 39.81 | 37.45 | 35.29 | 36.23 | 37.73 | 36.35 | 36.18 | 37.04 | 36.40 | 33.47 | 29.63 | 32.26 | 27.59 | 31.63 | 29.76 | 33.89 | 32.29 | 31.74 | 27.72 |
| Cash conversion cycle | days | -19.90 | -20.16 | -29.70 | -28.96 | 393.22 | -26.52 | -26.30 | -25.65 | 414.05 | -30.53 | -26.60 | -23.29 | 370.81 | -21.02 | -27.06 | -25.74 | 323.64 | -27.19 | -26.22 | -23.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.67 + 10.79 – 36.36
= -19.90
The cash conversion cycle of Comfort Systems USA, Inc. has shown some variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 80.51 days, slightly lower than the previous quarter. This decrease indicates that the company is taking slightly less time to convert its investments in inventory into cash receipts from customers.
Compared to Q4 2022, the cash conversion cycle has increased by about 10 days. This suggests that Comfort Systems USA, Inc. may be facing challenges in managing its working capital efficiently, resulting in a longer period between paying suppliers for inventory and receiving cash from customers.
Overall, the company's cash conversion cycle has fluctuated between 70 and 80 days over the past two years, indicating that there may be some inconsistencies in the company's ability to effectively manage its cash flow and working capital. Monitoring and improving this metric could help the company enhance its liquidity and operational efficiency.
Peer comparison
Dec 31, 2023