Fox Factory Holding Corp (FOXF)
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 | 152.24 | 135.81 | 119.48 | 117.85 | 77.18 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 152.24 | 135.81 | 119.48 | 117.85 | 77.18 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 152.24 + — – —
= 152.24
The cash conversion cycle for Fox Factory Holding Corp has shown a consistent increase over the years, indicating a lengthening time frame for the company to convert its investments in inventory back into cash.
Starting at 77.18 days on December 31, 2020, the cash conversion cycle increased to 117.85 days by December 31, 2021. This trend continued with further increases to 119.48 days by December 31, 2022, 135.81 days by December 31, 2023, and finally, reaching 152.24 days by December 31, 2024.
The prolonged cash conversion cycle may suggest challenges in managing inventory, accounts receivable, and accounts payable efficiently. It could also indicate potential liquidity concerns or operational inefficiencies within the company's supply chain or sales cycle.
Overall, the increasing trend in the cash conversion cycle for Fox Factory Holding Corp warrants a closer examination of its working capital management practices to ensure optimal cash flow and operational effectiveness in the future.
Peer comparison
Dec 31, 2024