Hayward Holdings Inc (HAYW)
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 | 151.70 | 152.36 | 144.38 | 114.22 | 110.86 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 151.70 | 152.36 | 144.38 | 114.22 | 110.86 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 151.70 + — – —
= 151.70
Hayward Holdings Inc's cash conversion cycle has been showing an increasing trend over the past few years. In December 2020, the company's cash conversion cycle stood at 110.86 days, which increased to 114.22 days by the end of 2021. Subsequently, there was a significant jump to 144.38 days by the end of 2022, and further to 152.36 days by the end of 2023. However, there was a slight decrease to 151.70 days by the end of 2024.
This indicates that Hayward Holdings Inc is taking longer to convert its inventory into cash over time, extending the time it takes for the company to receive payments from customers after incurring costs to produce goods. The increasing cash conversion cycle could potentially signal inefficiencies in managing inventory, collecting receivables, and managing payables. Management should closely monitor and address this trend to improve liquidity and operational efficiency.
Peer comparison
Dec 31, 2024