Fox Factory Holding Corp (FOXF)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.78 | 96.42 | 94.57 | 61.16 | 75.94 |
| Days of sales outstanding (DSO) | days | 43.11 | 45.76 | 40.20 | 50.26 | 44.71 |
| Number of days of payables | days | 29.63 | 36.07 | 33.79 | 44.47 | 32.59 |
| Cash conversion cycle | days | 119.27 | 106.11 | 100.98 | 66.95 | 88.06 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 105.78 + 43.11 – 29.63
= 119.27
The cash conversion cycle of Fox Factory Holding Corp has shown some fluctuation over the past five years. In 2023, the cash conversion cycle increased to 119.27 days from 106.11 days in 2022. This indicates that the company took longer to convert its investments in inventory and other resources into cash during the year.
Comparing to 2021 where the cash conversion cycle was 100.98 days, the increase in 2023 suggests potential inefficiencies in managing inventory, collecting receivables, or paying suppliers. However, it is worth noting that the cash conversion cycle in 2020 was significantly lower at 66.95 days, indicating more efficient management of cash flow during that period.
In 2019, the cash conversion cycle was 88.06 days, falling between the values observed in the later years. Overall, the trend in the cash conversion cycle for Fox Factory Holding Corp indicates some variability in the company's ability to efficiently manage working capital over the years, with 2020 being a standout year in terms of a lower cash conversion cycle.
Peer comparison
Dec 31, 2023