Matson Inc (MATX)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	33.09	22.65	32.14	39.31	34.44
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	33.09	22.65	32.14	39.31	34.44

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 33.09 – —
= 33.09

The cash conversion cycle for Matson Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle increased to 47.72 days from 36.92 days in 2022. This indicates that it took Matson longer to convert its resources into cash during 2023, which could be a result of slower collections from customers or longer inventory turnover.

Comparing 2023 to the trend in previous years, the cash conversion cycle has generally been improving since 2019 when it was negative, indicating a more efficient cash management process. However, the recent increase in 2023 suggests a potential area of concern that may require closer monitoring and management attention.

Overall, a higher cash conversion cycle means the company takes longer to convert its investments in inventory and accounts receivable into cash, which can tie up working capital and impact liquidity. It is essential for Matson Inc to assess the underlying reasons for this increase and take appropriate actions to optimize its cash conversion cycle for improved financial performance and efficiency.