ManpowerGroup Inc (MAN)
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 87.81 | 93.72 | 94.87 | 96.16 | 99.87 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 87.81 | 93.72 | 94.87 | 96.16 | 99.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 87.81 – —
= 87.81
The cash conversion cycle of ManpowerGroup Inc has shown a gradual improvement over the years, declining from 99.87 days as of December 31, 2020, to 87.81 days as of December 31, 2024. This indicates that the company has been managing its working capital more efficiently, with a decreasing number of days required to convert its investments in raw materials and production into cash receipts from sales.
A shorter cash conversion cycle typically signifies that the company is able to collect payments from customers more quickly, manage inventory levels effectively, and negotiate favorable credit terms with suppliers. This can lead to improved liquidity, reduced financing costs, and increased profitability.
ManpowerGroup Inc's decreasing cash conversion cycle suggests that the company is effectively managing its operations and working capital, which is a positive indicator of its financial health and operational efficiency over the years.
Peer comparison
Dec 31, 2024