Manhattan Associates Inc (MANH)
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 | 73.28 | 70.83 | 69.72 | 77.66 | 71.45 | 75.49 | 76.97 | 72.61 | 79.69 | 70.73 | 68.65 | 70.27 | 69.86 | 65.82 | 67.07 | 65.78 | 69.01 | 64.80 | 65.12 | 65.73 |
| Number of days of payables | days | 15.11 | 13.45 | 14.97 | 15.78 | 15.11 | 16.16 | 17.33 | 17.53 | 18.67 | 20.22 | 19.73 | 20.30 | 16.59 | 22.86 | 23.90 | 20.78 | 20.23 | 20.32 | 17.76 | 23.48 |
| Cash conversion cycle | days | 58.17 | 57.38 | 54.75 | 61.88 | 56.34 | 59.33 | 59.64 | 55.08 | 61.02 | 50.50 | 48.92 | 49.97 | 53.26 | 42.96 | 43.17 | 45.00 | 48.78 | 44.48 | 47.37 | 42.25 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 73.28 – 15.11
= 58.17
The cash conversion cycle (CCC) for Manhattan Associates Inc has shown fluctuations over the period provided. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, Manhattan Associates Inc's CCC ranged from a low of 42.25 days to a high of 61.88 days. Overall, the trend indicates that the CCC has increased over time, reaching a peak in the most recent period.
A longer CCC suggests that Manhattan Associates Inc may be taking longer to convert its investments into cash, potentially indicating inefficiencies in managing inventory, sales, and accounts receivable. On the other hand, a shorter CCC indicates that the company is more efficient in converting its resources into cash.
It is important for Manhattan Associates Inc to analyze the reasons behind the fluctuations in the CCC and consider strategies to optimize its cash conversion cycle. By improving inventory management, speeding up the collection of receivables, and managing payables effectively, the company can work towards reducing its CCC and improving its overall financial health.
Peer comparison
Dec 31, 2024