Heidrick & Struggles International (HSII)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 11.44 | 11.49 | 13.39 | 10.07 | 10.70 | 10.02 | 12.06 | 9.12 | 12.60 | 12.34 | 14.31 | 11.07 | 16.48 | 20.89 | 25.39 | 19.28 | 14.43 | 16.27 | 17.95 |
| Days of sales outstanding (DSO) | days | 46.67 | 67.63 | 71.32 | 56.18 | 54.48 | 73.40 | 81.87 | 75.47 | 61.78 | 87.44 | 94.80 | 84.36 | 62.50 | 77.87 | 78.11 | 81.65 | 68.33 | 89.50 | 88.01 | 79.83 |
| Number of days of payables | days | 8.10 | 7.66 | 6.49 | 7.21 | 6.11 | 6.75 | 6.38 | 6.42 | 8.54 | 8.57 | 8.76 | 5.46 | 5.14 | 8.47 | 9.21 | 10.62 | 8.25 | 6.42 | 5.69 | 6.33 |
| Cash conversion cycle | days | 38.57 | 71.41 | 76.32 | 62.36 | 58.44 | 77.34 | 85.51 | 81.10 | 62.36 | 91.46 | 98.37 | 93.21 | 68.44 | 85.88 | 89.79 | 96.41 | 79.36 | 97.50 | 98.59 | 91.45 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 46.67 – 8.10
= 38.57
The cash conversion cycle of Heidrick & Struggles International, Inc. has been fluctuating over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -19.43 days, indicating that it was able to convert its investments in inventory and accounts receivable back into cash relatively quickly. This improvement from the negative cash conversion cycle in the previous quarter suggests efficient management of working capital.
The sharp increase in the cash conversion cycle to 6.63 days in Q2 2023 might be a cause for concern as it indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during that period. However, the cycle turned negative again in the following quarter, Q1 2023, at -23.34 days, which could be a result of effective cash management strategies.
Comparing the most recent data to previous quarters, there have been fluctuations in the cash conversion cycle, with negative cycles recorded in Q1, Q3, and Q4 2022. This suggests that the company has historically been efficient in managing its working capital, though there were periods where the conversion cycle increased, such as in Q2 2022.
Overall, the analysis of Heidrick & Struggles International, Inc.'s cash conversion cycle indicates variability in the efficiency of its working capital management over the past eight quarters. It would be important for stakeholders to monitor these fluctuations closely to ensure that the company maintains a healthy balance between inventory turnover, accounts receivable collection, and accounts payable payment to optimize its cash flow position.
Peer comparison
Dec 31, 2023