ManpowerGroup Inc (MAN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 87.89 | 92.94 | 92.39 | 88.12 | 93.71 | 88.39 | 95.28 | 89.96 | 94.89 | 84.67 | 94.27 | 95.03 | 96.16 | 91.26 | 95.89 | 97.74 | 99.81 | 91.43 | 82.17 | 84.97 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 87.89 | 92.94 | 92.39 | 88.12 | 93.71 | 88.39 | 95.28 | 89.96 | 94.89 | 84.67 | 94.27 | 95.03 | 96.16 | 91.26 | 95.89 | 97.74 | 99.81 | 91.43 | 82.17 | 84.97 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 87.89 – —
= 87.89
The cash conversion cycle of ManpowerGroup Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
A decreasing trend is observed from March 31, 2020, to September 30, 2022, indicating that the company was managing its working capital more efficiently during this period. This could be attributed to improvements in inventory management, accounts receivable collection, and accounts payable payment strategies.
However, from September 30, 2022, to December 31, 2024, there was some fluctuation in the cash conversion cycle, ranging from 84.67 days to 92.94 days. These fluctuations may suggest changes in the company's operating cycle efficiency or variations in the management of working capital components.
Overall, a lower cash conversion cycle indicates that the company is able to generate cash quickly from its operational activities, which is a positive sign of liquidity and efficiency. Monitoring and managing the cash conversion cycle is essential for optimizing working capital and ensuring smooth business operations. The company should continue to focus on streamlining its processes to maintain an optimal cash conversion cycle.
Peer comparison
Dec 31, 2024