ManpowerGroup Inc (MAN)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 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 | 92.43 | 88.94 | 74.26 | 58.13 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 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 | 92.43 | 88.94 | 74.26 | 58.13 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 93.71 – —
= 93.71
The cash conversion cycle for ManpowerGroup, as reflected in the table, has exhibited some fluctuations over the past eight quarters. For Q4 2023, the cash conversion cycle was 29.32 days, indicating the average number of days it takes for the company to convert its investments in inventory into cash receipts from sales.
The overall trend of the cash conversion cycle over the eight quarters shows some variability but generally ranges between 27.89 days and 31.61 days. It is notable that the cycle has been relatively stable, with fluctuations not exceeding a few days.
The cash conversion cycle is a crucial metric for assessing the efficiency of a company's working capital management. A shorter cash conversion cycle is typically favorable as it indicates that the company is able to quickly convert its investments into cash, thereby improving liquidity and potentially reducing the need for external financing.
ManpowerGroup's trend of maintaining a cash conversion cycle around 30 days suggests reasonable efficiency in managing its working capital. However, there may be opportunities for the company to further optimize its cash conversion cycle to enhance its overall financial performance and liquidity position.
Peer comparison
Dec 31, 2023