Haverty Furniture Companies Inc (HVT)
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 | 43.15 | 46.48 | 45.72 | 46.45 | 49.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 0.69 |
| Number of days of payables | days | 8.62 | 9.17 | 12.75 | 16.24 | 13.06 |
| Cash conversion cycle | days | 34.52 | 37.31 | 32.97 | 30.21 | 36.83 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 43.15 + — – 8.62
= 34.52
The cash conversion cycle of Haverty Furniture Companies Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 34.52 days from 37.31 days in 2022, indicating that the company was able to convert its inventory and receivables into cash more efficiently. This improvement suggests better management of working capital and reduced time taken to generate cash from operating activities.
Comparing to the cycle in 2021 (32.97 days) and 2020 (30.21 days), the 2023 cycle is higher, signifying a potential delay in converting inventory and receivables into cash compared to those periods. It is worth noting that the company's cash conversion cycle was at its highest in 2019 at 36.83 days, indicating longer cash conversion period.
Overall, the trend in the cash conversion cycle suggests that Haverty Furniture Companies Inc has been working towards improving its efficiency in managing inventory and receivables in order to enhance its cash flow generation and operational performance.
Peer comparison
Dec 31, 2023