Alphabet Inc Class C (GOOG)

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	—	—	7.72	3.85	3.14
Days of sales outstanding (DSO)	days	54.75	57.29	52.24	57.05	62.76
Number of days of payables	days	19.93	20.51	14.83	19.86	24.08
Cash conversion cycle	days	34.82	36.78	45.13	41.04	41.82

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 54.75 – 19.93
= 34.82

The cash conversion cycle is a key metric in assessing the efficiency with which a company manages its working capital. For Alphabet Inc Class C, the cash conversion cycle has shown fluctuations over the years based on the provided data.

At the end of December 31, 2020, the company had a cash conversion cycle of 41.82 days, indicating the average number of days it takes for Alphabet Inc to convert its investments in inventory and other resources into cash flows from sales.

By December 31, 2021, Alphabet Inc's cash conversion cycle improved slightly to 41.04 days, suggesting a more efficient management of working capital during that period.

However, by the end of December 31, 2022, the cash conversion cycle increased to 45.13 days, reflecting a potential delay in converting investments into cash flows.

The trend reversed positively by December 31, 2023, with a notable decrease in the cash conversion cycle to 36.78 days, signaling an improvement in efficiency in managing working capital.

And finally, at the end of December 31, 2024, Alphabet Inc Class C further improved its cash conversion cycle to 34.82 days, indicating a more streamlined process in converting investments into cash.

Overall, the cash conversion cycle of Alphabet Inc Class C has shown fluctuations over the years, with the company making efforts to optimize its working capital management for more efficient operations and cash flow generation.