Heidrick & Struggles International (HSII)
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 | — | 18.75 | — | — | — | 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 |
| Days of sales outstanding (DSO) | days | 43.95 | 62.24 | 63.40 | 59.10 | 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 |
| Number of days of payables | days | 8.49 | 7.78 | 7.18 | 7.47 | 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 |
| Cash conversion cycle | days | 35.45 | 73.22 | 56.22 | 51.63 | 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 |
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 shows fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The cash conversion cycle decreased from 96.41 days on March 31, 2020, to 35.45 days on December 31, 2024. A lower cash conversion cycle indicates that the company is more efficient in managing its working capital.
There were fluctuations in the cash conversion cycle throughout this period, with peaks and troughs. For example, the cycle peaked at 98.37 days on June 30, 2021, before decreasing to 58.44 days on December 31, 2022. This could indicate changes in the company's operational efficiency and working capital management over time.
Overall, a decreasing trend in the cash conversion cycle is generally favorable as it suggests improvements in the company's ability to manage its working capital effectively, convert inventory into sales, and collect cash from customers more efficiently. However, it is important to analyze the underlying reasons for these fluctuations to understand the company's operational performance and financial health accurately.
Peer comparison
Dec 31, 2024