Forward Air Corporation (FWRD)
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 | — | — | — | — | 7.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 7.37 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Forward Air Corporation significantly improved over the years, decreasing from 7.37 days at the end of December 31, 2020, to 0.00 days at the end of each subsequent year up to December 31, 2024. This indicates that the company has been able to efficiently manage its working capital, specifically in terms of how quickly it can convert its inventory and receivables into cash, and also how efficiently it pays its suppliers. A cash conversion cycle of zero days suggests that the company is able to operate without tying up significant amounts of cash in its working capital cycle, potentially leading to improved liquidity and reduced financing costs. Overall, this trend in the cash conversion cycle is a positive indicator of the company's financial management and operational efficiency.
Peer comparison
Dec 31, 2024