Manhattan Associates Inc (MANH)
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 | 73.31 | 71.44 | 79.43 | 69.80 | 69.24 |
| Number of days of payables | days | 15.11 | 15.11 | 18.67 | 16.59 | 16.75 |
| Cash conversion cycle | days | 58.20 | 56.33 | 60.76 | 53.21 | 52.49 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 73.31 – 15.11
= 58.20
The cash conversion cycle of Manhattan Associates Inc has shown some fluctuation over the past five years. As of December 31, 2020, the company's cash conversion cycle was 52.49 days, which increased slightly to 53.21 days by December 31, 2021. There was a more significant increase in the cash conversion cycle to 60.76 days by December 31, 2022, indicating a longer period between cash outflows for inventory and cash inflows from sales.
However, the company was able to improve its cash conversion efficiency by reducing the cycle to 56.33 days by December 31, 2023. This improvement suggests better management of cash flows and working capital during that period. By December 31, 2024, the cash conversion cycle increased slightly to 58.20 days, showing some optimization opportunities for the company to further streamline its cash conversion process in the future.
Overall, the trend in Manhattan Associates Inc's cash conversion cycle indicates some variability in managing its working capital efficiency over the years, with efforts to optimize cash flows evident in certain periods. Further analysis of the underlying factors contributing to these fluctuations would provide deeper insights into the company's operational and financial performance.
Peer comparison
Dec 31, 2024