Genpact Limited (G)
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 92.02 | 91.42 | 83.34 | 80.81 | 86.95 |
| Number of days of payables | days | 4.33 | 3.48 | 4.61 | 3.52 | 2.10 |
| Cash conversion cycle | days | 87.69 | 87.94 | 78.73 | 77.29 | 84.85 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 92.02 – 4.33
= 87.69
Genpact Limited's cash conversion cycle has shown fluctuations over the past five years. As of December 31, 2020, the cycle was 84.85 days, indicating the time it takes for the company to convert its investments in inventory and other resources into cash.
By December 31, 2021, the cash conversion cycle improved to 77.29 days, suggesting a more efficient management of working capital. However, in the following year, by December 31, 2022, the cycle increased slightly to 78.73 days.
The trend reversed in the subsequent years, as by December 31, 2023, the cash conversion cycle extended to 87.94 days, indicating a potential delay in converting investments into cash. This trend continued into December 31, 2024, where the cycle further increased to 87.69 days.
Overall, the analysis of Genpact Limited's cash conversion cycle demonstrates fluctuations in efficiency in managing working capital and converting investments into cash over the five-year period.
Peer comparison
Dec 31, 2024