Generac Holdings Inc (GNRC)
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 | 106.16 | 122.90 | 133.17 | 136.45 | 114.19 |
| Days of sales outstanding (DSO) | days | 52.07 | 49.97 | 42.41 | 53.86 | 55.80 |
| Number of days of payables | days | 47.20 | 35.87 | 42.27 | 84.42 | 62.51 |
| Cash conversion cycle | days | 111.02 | 137.00 | 133.32 | 105.89 | 107.49 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 106.16 + 52.07 – 47.20
= 111.02
The cash conversion cycle of Generac Holdings Inc has fluctuated over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 107.49 days, which decreased slightly to 105.89 days by December 31, 2021. However, there was a significant increase in the cash conversion cycle to 133.32 days by December 31, 2022, and further to 137.00 days by December 31, 2023.
By December 31, 2024, Generac Holdings Inc managed to reduce the cash conversion cycle to 111.02 days, showing an improvement from the previous year. Overall, the trend indicates some variability in the efficiency of the company's cash management and working capital cycles over the years, with efforts made to control and improve the conversion of inventory and receivables into cash within the business operations.
Peer comparison
Dec 31, 2024