Harley-Davidson Inc (HOG)
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 80.59 | 67.95 | 60.62 | 74.88 | 91.86 | 78.87 | 87.16 | 81.19 | 93.11 | 65.25 | 71.80 | 69.66 | 71.79 | 51.09 | 51.63 | 58.13 | 63.06 | 35.77 | 46.34 | 59.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 80.59 | 67.95 | 60.62 | 74.88 | 91.86 | 78.87 | 87.16 | 81.19 | 93.11 | 65.25 | 71.80 | 69.66 | 71.79 | 51.09 | 51.63 | 58.13 | 63.06 | 35.77 | 46.34 | 59.76 |
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 fluctuations over the periods observed. The cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, indicates the efficiency of the company's working capital management.
From March 31, 2020, to December 31, 2024, there are periods of improvement and deterioration in the cash conversion cycle. The cycle decreased from 59.76 days on March 31, 2020, to 35.77 days on September 30, 2020, indicating a more efficient management of cash flow and working capital during that period. However, the cycle started to increase again and reached 93.11 days on December 31, 2022, suggesting possible issues with managing working capital effectively.
By March 31, 2024, the cash conversion cycle improved to 74.88 days but remained higher compared to previous periods. It is essential for Harley-Davidson Inc to focus on optimizing its cash conversion cycle by streamlining its inventory management, improving accounts receivable collection processes, and managing accounts payable efficiently.
Overall, the fluctuating trend in the cash conversion cycle of Harley-Davidson Inc indicates the need for continuous monitoring and adjustment of working capital management practices to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2024