Grid Dynamics Holdings Inc (GDYN)
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 | — | — | 8.25 | 1.73 | 4.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 8.25 | 1.73 | 4.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Grid Dynamics Holdings Inc's cash conversion cycle has shown significant fluctuations over the past five years.
At the end of 2020, the company had a relatively low cash conversion cycle of 4.30 days, indicating that it took approximately 4.30 days to convert its investments in inventory and accounts receivable into cash.
By the end of 2021, the cash conversion cycle improved to 1.73 days, suggesting that the company was able to manage its working capital more efficiently, potentially by reducing inventory levels or collecting receivables quicker.
However, the trend reversed in 2022 when the cash conversion cycle increased to 8.25 days, indicating that the company's ability to convert its assets into cash deteriorated significantly.
Interestingly, by the end of 2023 and 2024, the cash conversion cycle dropped to 0.00 days, which could suggest that the company either significantly improved its working capital management, streamlined its operations, or implemented more efficient payment terms with customers.
Overall, the fluctuation in Grid Dynamics Holdings Inc's cash conversion cycle signals a need for the company to maintain focus on managing its working capital effectively to ensure optimal liquidity and operational efficiency in the future.
Peer comparison
Dec 31, 2024