Forward Air Corporation (FWRD)
Cash conversion cycle
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 0.26 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.13 | 5.63 | 3.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.26 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7.13 | 5.63 | 3.88 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Forward Air Corporation has shown fluctuations in its cash conversion cycle over the analyzed period. The cash conversion cycle is a measure of how efficiently a company manages its working capital by indicating the time it takes to convert its resources (cash) back into cash through operations.
The company's cash conversion cycle decreased from 3.88 days on June 30, 2020, to 0.26 days on September 30, 2024, with intermittent periods of 0 days in between. A decreasing cash conversion cycle generally indicates an improvement in the company's liquidity and efficiency in converting investments in inventory and accounts receivable into cash.
It is important to note that a low or zero cash conversion cycle may suggest that the company can quickly convert its investments into cash, potentially indicating efficient working capital management. However, the trend should be carefully monitored to ensure that the company maintains a healthy balance between managing its cash holdings and investing in operations for growth and profitability.
Peer comparison
Mar 31, 2025