Myers Industries Inc (MYE)

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	44.30	41.42	47.45	50.65	33.15
Days of sales outstanding (DSO)	days	51.14	54.24	48.18	60.44	44.50
Number of days of payables	days	38.55	32.63	41.43	46.99	35.10
Cash conversion cycle	days	56.89	63.04	54.20	64.11	42.55

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.30 + 51.14 – 38.55
= 56.89

The cash conversion cycle of Myers Industries Inc. has displayed fluctuations over the past five years. In 2023, the company's cash conversion cycle was 65.52 days, slightly lower than the previous year. This metric increased significantly from 57.34 days in 2021, reaching its highest point in 2022 at 65.99 days. The trend indicates that the company took longer to convert its investments in inventory and accounts receivable into cash in these years.

Comparing to 2019, where the cash conversion cycle was notably lower at 41.42 days, there has been an overall increase in the time it takes for Myers Industries Inc. to convert its resources back into cash. The longer cash conversion cycle may imply inefficiencies in managing inventory, collecting receivables, or paying suppliers, impacting the company's working capital management and potentially indicating liquidity challenges or operational inefficiencies.