GXO Logistics Inc (GXO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | |||
| Days of sales outstanding (DSO) | days | 65.79 | 63.13 | 66.55 | 63.71 | 67.06 | 62.76 | 67.37 | 66.57 | |||
| Number of days of payables | days | 28.23 | 24.00 | 22.97 | 26.88 | 30.12 | 24.44 | 26.38 | 25.23 | |||
| Cash conversion cycle | days | 37.56 | 39.13 | 43.58 | 36.84 | 36.95 | 38.32 | 40.99 | 41.34 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 65.79 – 28.23
= 37.56
The cash conversion cycle of GXO Logistics Inc has fluctuated over the past five quarters. The pattern indicates that the company's ability to convert its resources efficiently has varied. In Q4 2023, the cash conversion cycle was 65.44 days, showing a slight increase compared to the preceding quarter at 62.79 days. Despite the uptick, the cycle remained relatively stable within the range observed over this period. The company was able to optimize its cash flow slightly better in Q3 2023 with a lower figure of 62.79 days compared to Q2 2023, which recorded a cycle of 66.25 days. Q1 2023 saw an improvement to 63.45 days from the higher cycle of 66.85 days in Q4 2022. This indicates ongoing efforts to manage cash flow efficiency. Overall, it is crucial for GXO Logistics Inc to continue monitoring and potentially reducing its cash conversion cycle to enhance liquidity and operational performance.
Peer comparison
Dec 31, 2023