KAR Auction Services Inc (KAR)
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 | — | — | 6.78 | 7.24 | 17.10 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 6.78 | 7.24 | 17.10 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of KAR Auction Services Inc has shown a decreasing trend over the years, indicating more efficient management of cash flow and working capital. The cycle decreased from 17.10 days on December 31, 2020, to 7.24 days on December 31, 2021, and further to 6.78 days on December 31, 2022. The company managed to effectively convert its inventory into sales and accounts receivable into cash, resulting in a shorter period for cash to complete a full cycle. Additionally, the cash conversion cycle reached 0.00 days on both December 31, 2023, and December 31, 2024, suggesting that the company was able to operate without tying up cash in the process. Overall, the trend implies improved liquidity and operational efficiency for KAR Auction Services Inc.
Peer comparison
Dec 31, 2024