Healthcare Services Group Inc (HCSG)
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 | 4.11 | 4.63 | 5.16 | 6.71 | 7.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 4.11 | 4.63 | 5.16 | 6.71 | 7.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.11 + — – —
= 4.11
The cash conversion cycle of Healthcare Services Group Inc has shown a decreasing trend over the past five years, starting at 7.73 days on December 31, 2020, and decreasing to 4.11 days on December 31, 2024. This indicates that the company has been able to manage its cash flow more efficiently over time, which is a positive sign. A lower cash conversion cycle means that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, improving its liquidity and financial health. Overall, the decreasing trend in the cash conversion cycle reflects improved efficiency in managing working capital and operating cash flow within Healthcare Services Group Inc.