WW Grainger Inc (GWW)
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 | 80.85 | 77.00 | 77.83 | 78.77 | 82.86 | 81.42 | 83.53 | 85.87 | 87.68 | 82.26 | 81.72 | 82.11 | 82.22 | 80.38 | 78.55 | 79.71 | 83.68 | 87.68 | 84.59 | 81.14 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 80.85 | 77.00 | 77.83 | 78.77 | 82.86 | 81.42 | 83.53 | 85.87 | 87.68 | 82.26 | 81.72 | 82.11 | 82.22 | 80.38 | 78.55 | 79.71 | 83.68 | 87.68 | 84.59 | 81.14 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.85 + — – —
= 80.85
The cash conversion cycle for WW Grainger Inc has shown a fluctuating trend over the period indicated. Starting at 81.14 days on March 31, 2020, it increased to 87.68 days by September 30, 2020, before decreasing to 78.55 days by June 30, 2021. From there, it gradually increased again to reach 87.68 days by December 31, 2022. However, following that peak, the cash conversion cycle began to decline, reaching a low of 77.00 days by September 30, 2024.
Overall, the company's cash conversion cycle has shown variability, indicating potential changing efficiency in converting its resources into cash. It is important for the company to continue monitoring and managing this metric to ensure optimal liquidity and operational efficiency.