Mister Car Wash, Inc. Common Stock (MCW)
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 | 7.19 | 8.98 | 12.47 | 8.72 | 12.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 7.19 | 8.98 | 12.47 | 8.72 | 12.07 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.19 + — – —
= 7.19
The cash conversion cycle of Mister Car Wash, Inc. Common Stock has shown fluctuations over the past five years.
As of December 31, 2020, the cash conversion cycle was 12.07 days, indicating that it took the company approximately 12 days to convert its investments in inventory and other resources into cash inflows from sales.
By December 31, 2021, the cash conversion cycle improved to 8.72 days, suggesting a more efficient management of working capital and quicker conversion of assets into cash.
However, in the following year, by December 31, 2022, the cash conversion cycle increased to 12.47 days, indicating a potential slowdown in the conversion of investments into cash.
The trend reversed in 2023, with the cash conversion cycle decreasing to 8.98 days by December 31, signaling a return to a more efficient cash conversion process.
By the end of December 31, 2024, the cash conversion cycle further improved to 7.19 days, showing the company's continued focus on streamlining its operations and optimizing its working capital management.
Overall, fluctuations in the cash conversion cycle suggest that Mister Car Wash, Inc. has experienced varying levels of efficiency in converting its resources into cash inflows over the past five years. Monitoring this metric can provide insights into the company's working capital management and operational effectiveness.
Peer comparison
Dec 31, 2024