Graco Inc (GGG)
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 | 149.07 | 154.65 | 160.24 | 146.32 | 131.14 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 149.07 | 154.65 | 160.24 | 146.32 | 131.14 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 149.07 + — – —
= 149.07
The cash conversion cycle for Graco Inc has been on a fluctuating trend over the past five years. Starting at 131.14 days on December 31, 2020, it increased to 146.32 days by December 31, 2021, indicating a longer time between cash outflows and cash inflows.
By December 31, 2022, the cash conversion cycle further extended to 160.24 days, suggesting a potential slowdown in the conversion of inventory and receivables into cash. However, there was a slight improvement by December 31, 2023, as the cycle decreased to 154.65 days, showing some positive movement in efficiency.
As of December 31, 2024, the cash conversion cycle decreased to 149.07 days, demonstrating a more efficient management of working capital compared to the previous year. Overall, Graco Inc should continue to focus on optimizing its cash conversion cycle to improve liquidity and operational efficiency.
Peer comparison
Dec 31, 2024