Floor & Decor Holdings Inc (FND)
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 | 156.45 | 145.60 | 143.93 | 145.66 | 157.99 | 157.51 | 163.85 | 165.23 | 183.05 | 190.92 | 209.20 | 191.91 | 182.96 | 162.82 | 142.90 | 146.15 | 171.62 | 171.76 | 182.45 | 175.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 156.45 | 145.60 | 143.93 | 145.66 | 157.99 | 157.51 | 163.85 | 165.23 | 183.05 | 190.92 | 209.20 | 191.91 | 182.96 | 162.82 | 142.90 | 146.15 | 171.62 | 171.76 | 182.45 | 175.38 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 156.45 + — – —
= 156.45
Floor & Decor Holdings Inc's cash conversion cycle has shown fluctuations over the years, indicating changes in the company's efficiency in managing its working capital. The cycle started at 175.38 days on March 31, 2020, and gradually decreased to a low of 142.90 days on June 30, 2021. This suggests an improvement in the company's ability to convert inventory into cash during this period.
However, the trend reversed, with the cash conversion cycle increasing to 209.20 days on June 30, 2022, and fluctuating in the subsequent quarters. This increase may signal challenges in managing accounts receivable and inventory turnover efficiently.
By December 31, 2024, the cash conversion cycle had decreased to 156.45 days, showing some improvement from previous periods. It is important for the company to monitor its cash conversion cycle closely to ensure optimal utilization of working capital and efficient management of cash flow in the future.
Peer comparison
Dec 31, 2024