MYR Group Inc (MYRG)
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 | — | — | 6.84 | — | — |
| Days of sales outstanding (DSO) | days | 54.29 | 59.92 | 58.21 | 65.81 | 71.10 |
| Number of days of payables | days | 37.25 | 39.73 | 30.75 | 27.42 | 34.74 |
| Cash conversion cycle | days | 17.04 | 20.19 | 34.31 | 38.39 | 36.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 54.29 – 37.25
= 17.04
The cash conversion cycle for MYR Group Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's efficiency in managing its working capital.
In 2023, MYR Group Inc's cash conversion cycle is the shortest at 12.68 days compared to the previous years. This suggests that the company is able to sell its inventory, collect receivables, and pay its payables more efficiently, leading to a quicker cash conversion cycle.
The decreasing trend in the cash conversion cycle implies that MYR Group Inc has been able to streamline its operations and optimize its working capital management. A shorter cash conversion cycle is generally positive as it indicates that the company is able to convert its investments in inventory and accounts receivable into cash quickly, improving liquidity and overall financial health.
Overall, the decreasing trend in MYR Group Inc's cash conversion cycle reflects positively on the company's operational efficiency and ability to efficiently manage its working capital over the past five years.
Peer comparison
Dec 31, 2023