Grid Dynamics Holdings Inc (GDYN)
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 | — | — | — | — | — | 26.80 | 29.75 | 21.97 | — | 17.38 | — | 11.59 | 1.73 | 2.48 | 4.52 | 3.80 | 4.30 | 5.80 | 4.56 | 1.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 26.80 | 29.75 | 21.97 | 0.00 | 17.38 | 0.00 | 11.59 | 1.73 | 2.48 | 4.52 | 3.80 | 4.30 | 5.80 | 4.56 | 1.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Grid Dynamics Holdings Inc's cash conversion cycle has fluctuated over the years based on the data provided in the json.
In March 2020, the company had a relatively low cash conversion cycle of 1.67 days, indicating that it efficiently converted its resources into cash. However, by March 2023, the cash conversion cycle had significantly increased to 21.97 days, suggesting a longer period for the company to realize cash flows from its investments.
The trend in the cash conversion cycle shows variability in the company's ability to efficiently manage its working capital. The significant increase in the cash conversion cycle in subsequent periods may indicate challenges in optimizing inventory, managing accounts receivable, or delaying accounts payable.
Furthermore, the data shows instances of zero days in the cash conversion cycle, particularly in June and December 2022. This could be due to the timing of transactions or data discrepancies.
Overall, analyzing the cash conversion cycle provides insight into Grid Dynamics Holdings Inc's liquidity management and operational efficiency in converting investments into cash flows, highlighting areas for improvement and potential risks in working capital management.
Peer comparison
Dec 31, 2024