Mister Car Wash, Inc. Common Stock (MCW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.81 | 5.27 | 6.10 | 8.50 | 10.76 | 12.21 | 11.13 | 11.13 | 12.47 | 12.23 | 9.95 | 9.16 | 8.72 | 8.06 | 9.67 | 11.89 | 12.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 5.81 | 5.27 | 6.10 | 8.50 | 10.76 | 12.21 | 11.13 | 11.13 | 12.47 | 12.23 | 9.95 | 9.16 | 8.72 | 8.06 | 9.67 | 11.89 | 12.07 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.81 + — – —
= 5.81
Mister Car Wash, Inc. Common Stock has shown fluctuations in its cash conversion cycle over the past few years. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From December 31, 2020, to September 30, 2022, the cash conversion cycle demonstrated a decreasing trend, indicating an improvement in the company's efficiency in managing its working capital. This trend suggests the company was able to streamline its operations, reduce inventory holding periods, and speed up the collection of receivables, resulting in quicker cash generation.
However, from September 30, 2022, to December 31, 2024, the cash conversion cycle began to increase again, indicating potential challenges in managing working capital effectively. This increase may be attributed to factors such as slower inventory turnover or delayed collection of receivables, which could lead to cash flow constraints.
The significant improvement observed from June 30, 2024, to December 31, 2024, where the cash conversion cycle decreased from 6.10 days to 5.81 days, suggests that the company took steps to address working capital inefficiencies and improve its cash flow management.
Overall, monitoring and analyzing the cash conversion cycle can provide valuable insights into Mister Car Wash, Inc. Common Stock's operational efficiency, liquidity position, and ability to convert its resources into cash effectively.
Peer comparison
Dec 31, 2024