Kelly Services A Inc (KELYA)
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 | 29.35 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.76 | — | — | — |
| Days of sales outstanding (DSO) | days | 87.61 | 131.21 | 132.84 | — | 379.85 | — | — | — | 105.88 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 116.95 | 131.21 | 132.84 | 0.00 | 379.85 | 0.00 | 0.00 | 0.00 | 105.88 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.76 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.35 + 87.61 – —
= 116.95
The cash conversion cycle measures the efficiency of a company's management of working capital by assessing how long it takes for a company to convert its resources into cash flows. Kelly Services, Inc.'s cash conversion cycle has shown fluctuations over the past eight quarters.
In Q4 2023, the cash conversion cycle improved to 87.60 days compared to the previous quarter, indicating that the company was able to more efficiently convert its investments into cash during this period. This improvement may be attributed to more effective management of inventory, accounts receivable, and accounts payable.
However, in Q3 and Q2 2023, the cash conversion cycle increased to 104.75 days and 106.32 days, respectively, indicating a lengthening of the company's cash conversion process. This increase could be a result of difficulties in collecting receivables or managing inventory levels.
Looking further back, in Q1 2023 and Q4 2022, the cash conversion cycle remained relatively consistent around the 106-110 days range, suggesting a stable but potentially slower conversion of resources into cash during these periods.
Overall, fluctuations in Kelly Services, Inc.'s cash conversion cycle over the past eight quarters indicate variations in the company's working capital management efficiency and highlight the importance of closely monitoring key operational factors that impact cash flow processes.
Peer comparison
Dec 31, 2023