Heidrick & Struggles International (HSII)
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 | — | — | 10.06 | 9.28 | 10.52 |
| Days of sales outstanding (DSO) | days | 43.95 | 46.67 | 54.48 | 61.78 | 62.50 |
| Number of days of payables | days | 8.49 | 8.09 | 6.10 | 8.69 | 4.88 |
| Cash conversion cycle | days | 35.45 | 38.58 | 58.44 | 62.37 | 68.14 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 43.95 – 8.49
= 35.45
The cash conversion cycle of Heidrick & Struggles International has shown a positive trend over the years, indicating an improvement in the company's efficiency in managing its working capital. Initially, in December 2020, the cash conversion cycle was 68.14 days, reflecting the time it took for the company to convert its invested resources into cash.
Subsequently, in December 2021, the cash conversion cycle decreased to 62.37 days, suggesting a quicker turnaround in converting inventory and receivables into cash. This trend continued in December 2022, with a further reduction to 58.44 days, indicating enhanced working capital management practices.
By December 2023, the cash conversion cycle significantly decreased to 38.58 days, demonstrating a substantial improvement in the company's efficiency in converting its resources into cash. This reduction implies a more streamlined process in converting sales into cash flow.
Lastly, in December 2024, the cash conversion cycle decreased even further to 35.45 days, reflecting Heidrick & Struggles International's continued focus on optimizing its working capital efficiency. Overall, the decreasing trend in the cash conversion cycle showcases the company's ability to efficiently manage its operating cycle, inventory turnover, and collection of receivables, thereby improving its cash flow and liquidity position over the years.
Peer comparison
Dec 31, 2024