Genpact Limited (G)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 92.02 | 95.21 | 92.50 | 92.97 | 91.42 | 87.24 | 83.77 | 83.84 | 83.34 | 83.87 | 87.47 | 85.81 | 80.81 | 89.41 | 87.96 | 86.97 | 86.95 | 85.07 | 87.20 | 91.94 |
| Number of days of payables | days | 4.33 | 2.24 | 3.50 | 3.50 | 3.48 | 3.37 | 5.34 | 2.89 | 4.61 | 3.61 | 3.57 | 2.88 | 3.52 | 3.62 | 3.75 | 3.26 | 2.10 | 4.61 | 2.91 | 4.00 |
| Cash conversion cycle | days | 87.69 | 92.96 | 89.00 | 89.47 | 87.94 | 83.86 | 78.43 | 80.94 | 78.73 | 80.25 | 83.90 | 82.94 | 77.29 | 85.78 | 84.21 | 83.71 | 84.85 | 80.46 | 84.29 | 87.94 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 92.02 – 4.33
= 87.69
The cash conversion cycle for Genpact Limited fluctuated over the periods in the dataset provided. It is a measure of how long it takes for a company to convert its resources into cash flow.
The trend in the cash conversion cycle for Genpact shows some variability but generally appears to be within a range, with some intermittent spikes. The cycle ranged from a low of 77.29 days as of December 31, 2021, to a high of 92.96 days as of September 30, 2024.
A lower cash conversion cycle is generally preferred as it indicates that the company is able to efficiently manage its working capital and quickly convert its inventory and receivables into cash. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing working capital, potentially leading to cash flow challenges.
Overall, Genpact's cash conversion cycle seems to have remained relatively stable over the periods provided, with occasional fluctuations. The company may benefit from further analysis to identify the underlying factors driving these fluctuations and to potentially improve its working capital management efficiency.
Peer comparison
Dec 31, 2024