Kelly Services A Inc (KELYA)

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	21.91	—	—	—	1.76
Days of sales outstanding (DSO)	days	87.63	110.01	105.89	102.47	87.39
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	109.54	110.01	105.89	102.47	89.15

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.91 + 87.63 – —
= 109.54

The cash conversion cycle of Kelly Services, Inc. has shown some fluctuations over the past five years. In 2023, the cash conversion cycle decreased to 87.60 days from 109.65 days in the previous year, indicating an improvement in the company's efficiency in managing its cash flow. However, in 2022 the cycle increased to 105.80 days, and in 2021 it was at 102.26 days, suggesting some challenges in effectively converting assets into cash during those periods.

Notably, in 2019, the cash conversion cycle was at 87.39 days, similar to the latest reported figure in 2023. This consistency over four years may indicate a stabilization in the company's cash conversion process.

Overall, Kelly Services, Inc. has experienced fluctuations in its cash conversion cycle in recent years, with improvements in some periods and challenges in others. Analyzing trends in the cash conversion cycle can provide valuable insights into the company's liquidity and operational efficiency.