Harley-Davidson Inc (HOG)
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 | 80.59 | 83.82 | 101.98 | 71.79 | 63.06 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 80.59 | 83.82 | 101.98 | 71.79 | 63.06 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.59 + — – —
= 80.59
The cash conversion cycle of Harley-Davidson Inc has shown some fluctuations over the past five years. The cycle increased from 63.06 days as of December 31, 2020, to 71.79 days by December 31, 2021, indicating a slight extension in the time it takes to convert resources into cash.
However, there was a notable jump in the cash conversion cycle by December 31, 2022, reaching 101.98 days, which suggests a significant delay in the company's cash conversion activities. This may indicate inefficiencies in managing cash flow and working capital during that period.
Subsequently, there was a decrease in the cycle to 83.82 days by December 31, 2023, and further to 80.59 days by December 31, 2024. These reductions indicate improvements in the company's ability to convert resources into cash more efficiently in those years.
Overall, the trend in Harley-Davidson Inc's cash conversion cycle reflects variability in its working capital management over the past five years, with some periods of prolonged cash conversion times and subsequent improvements. Monitoring and managing the cash conversion cycle is crucial for maintaining healthy liquidity and operational efficiency.
Peer comparison
Dec 31, 2024