Graham Holdings Co (GHC)
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 | 31.88 | 32.90 | 35.51 | 36.92 | 34.58 | 34.06 | 32.57 | 32.45 | 31.15 | 30.60 | 27.61 | 25.32 | 24.42 | 17.81 | 23.25 | 25.60 | 23.05 | 23.46 | 22.47 | 20.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 31.88 | 32.90 | 35.51 | 36.92 | 34.58 | 34.06 | 32.57 | 32.45 | 31.15 | 30.60 | 27.61 | 25.32 | 24.42 | 17.81 | 23.25 | 25.60 | 23.05 | 23.46 | 22.47 | 20.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.88 + — – —
= 31.88
The cash conversion cycle is a critical metric for assessing how efficiently a company manages its working capital. It represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
Analyzing the cash conversion cycle of Graham Holdings Co based on the provided data reveals fluctuations in the efficiency of the company's working capital management over the reported periods:
- The cash conversion cycle ranged from a low of 17.81 days on September 30, 2021, to a high of 36.92 days on March 31, 2024. A lower number indicates a more efficient use of working capital.
- Generally, the trend shows an increase in the cash conversion cycle over the periods, which could imply that the company's efficiency in managing its working capital deteriorated.
- The most recent data point on December 31, 2024, shows a slight improvement in the cash conversion cycle compared to the peak in the previous quarter.
- It is crucial for Graham Holdings Co to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and to maintain healthy liquidity levels for sustained operations.
In conclusion, the cash conversion cycle analysis highlights the importance of monitoring working capital efficiency and implementing strategies to enhance cash flow management within Graham Holdings Co to support its financial health and operational stability.
Peer comparison
Dec 31, 2024