Graham Holdings Co (GHC)

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	32.48	34.96	31.15	24.42	23.03
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	32.48	34.96	31.15	24.42	23.03

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.48 + — – —
= 32.48

The cash conversion cycle of Graham Holdings Co has shown a fluctuating trend over the past five years. In December 2020, the company's cash conversion cycle stood at 23.03 days, indicating that it took approximately 23 days for Graham Holdings Co to convert its investments in inventory and other resources into cash.

By December 2021, the cash conversion cycle increased slightly to 24.42 days, suggesting a slightly longer period for the company to convert its investments into cash. This could indicate potential inefficiencies in managing inventory and collecting receivables during that period.

However, there was a notable increase in the cash conversion cycle to 31.15 days by December 2022, which further extended to 34.96 days by December 2023. These increases may signal liquidity challenges or potential delays in converting investments into cash, which could impact the company's cash flow and working capital management.

In December 2024, there was a decrease in the cash conversion cycle to 32.48 days compared to the previous year, but it still remained higher than the levels seen in the earlier years. This suggests that Graham Holdings Co may have made some improvements in managing its cash conversion cycle, but there may still be room for further optimization.

Overall, the fluctuations in the cash conversion cycle of Graham Holdings Co over the past five years indicate the importance of closely monitoring working capital management practices to ensure efficient operations and optimal cash flow performance.