GXO Logistics Inc (GXO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 0.03 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The Cash Conversion Cycle (CCC) for GXO Logistics Inc has remained consistently low and efficient over the past few years. The CCC measures how long it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
Based on the provided data, the company has effectively managed its working capital and operational efficiency, as indicated by the consistently low CCC figures ranging from 0.00 to 0.03 days between December 31, 2020, and December 31, 2024.
A CCC of 0.00 days suggests that GXO Logistics Inc has been able to quickly convert its inventory into sales and subsequently into cash, indicating strong liquidity management and efficient operations. The slight increase to 0.03 days by March 31, 2024, could be attributed to seasonal fluctuations or specific operational factors.
Overall, the company's ability to maintain a low and stable CCC reflects effective inventory management, timely collections from customers, and efficient payment to suppliers, all of which are crucial for sustaining healthy cash flow and financial stability.
Peer comparison
Dec 31, 2024