Heidrick & Struggles International (HSII)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 10.06 | 9.28 | 10.52 | 14.43 |
| Days of sales outstanding (DSO) | days | 46.67 | 54.48 | 61.78 | 62.50 | 68.33 |
| Number of days of payables | days | 8.09 | 6.10 | 8.69 | 4.88 | 6.17 |
| Cash conversion cycle | days | 38.58 | 58.44 | 62.37 | 68.14 | 76.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 46.67 – 8.09
= 38.58
The cash conversion cycle of Heidrick & Struggles International, Inc. has shown variability over the past five years.
Starting with Dec 31, 2019, the company had a positive cash conversion cycle of 57.13 days, indicating that it took around 57 days to convert its investments in inventory and other resources into cash flows from sales.
By Dec 31, 2020, the cash conversion cycle improved significantly to 54.50 days, suggesting a faster conversion of inventory into cash compared to the previous year.
However, the trends reversed in Dec 31, 2021, where the cash conversion cycle dropped to a negative 91.31 days. This negative value implies that the company was able to convert its investments into cash much faster than before, possibly indicating efficient inventory management and collection of receivables.
In Dec 31, 2022, the cash conversion cycle continued to improve further to -29.19 days, reinforcing the company's efficient management of its working capital and cash flows.
The most recent data available as of Dec 31, 2023, shows a cash conversion cycle of -19.43 days, indicating that the company continues to efficiently convert its resources into cash, albeit at a slightly slower rate compared to the previous year.
Overall, the trend towards a decreasing cash conversion cycle over the years reflects a positive efficiency in managing the company's working capital and cash flows, which can be beneficial for its financial performance and liquidity.
Peer comparison
Dec 31, 2023