Floor & Decor Holdings Inc (FND)
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 | 163.56 | 157.99 | 185.95 | 182.96 | 171.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 163.56 | 157.99 | 185.95 | 182.96 | 171.62 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 163.56 + — – —
= 163.56
Floor & Decor Holdings Inc's cash conversion cycle reflects the efficiency of its working capital management. The trend analysis of the cash conversion cycle over the years shows an increase from 171.62 days in 2020 to 182.96 days in 2021, indicating a slowdown in converting company resources into cash.
This trend continued with further increases to 185.95 days in 2022, but the following year, there was a notable improvement as the cash conversion cycle decreased to 157.99 days. This improvement suggests that the company was able to more efficiently manage its working capital and convert its resources into cash faster.
However, in 2024, the cash conversion cycle increased slightly to 163.56 days. Overall, while there have been fluctuations in the cash conversion cycle, the company needs to focus on maintaining or further improving its efficiency in managing working capital to optimize cash flows and liquidity. Further analysis of the individual components comprising the cash conversion cycle, such as days sales outstanding, days inventory outstanding, and days payable outstanding, would provide more insights into where improvements could be made.
Peer comparison
Dec 31, 2024