Manhattan Associates Inc (MANH)

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	12.77	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	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	60.44	64.97	62.14	67.96
Number of days of payables	days	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	21.91	22.92	19.67	20.35
Cash conversion cycle	days	69.11	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	38.54	42.04	42.47	47.60

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.77 + 71.45 – 15.11
= 69.11

The cash conversion cycle of Manhattan Associates, Inc. has shown some fluctuations over the past eight quarters. The cycle measures the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, Manhattan Associates had a cash conversion cycle of 50.97 days, representing a slight improvement compared to the previous quarter. However, the cycle has been relatively stable over the past four quarters, ranging from 47.97 to 53.47 days.

The cash conversion cycle of Manhattan Associates indicates that the company is able to efficiently manage its working capital and convert its inventory and other resources into cash. A shorter cash conversion cycle is generally favorable, as it suggests that the company can quickly generate cash from its operations.

Overall, Manhattan Associates has maintained a reasonable level of efficiency in managing its cash conversion cycle, which is essential for sustaining operations and supporting future growth. Monitoring this metric going forward can provide insights into the company's liquidity and operational efficiency.