MYR Group Inc (MYRG)
Cash conversion cycle
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | 6.84 | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 54.29 | 58.66 | 53.75 | 49.79 | 59.92 | 59.64 | 60.17 | 57.85 | 58.21 | 56.59 | 61.42 | 60.55 | 65.81 | 67.90 | 58.61 | 62.03 | 71.08 | 100.39 | 89.67 | 96.68 |
| Number of days of payables | days | 37.26 | 40.78 | 37.98 | 34.98 | 39.73 | 38.30 | 36.87 | 33.60 | 30.75 | 30.01 | 32.87 | 31.51 | 27.42 | 35.19 | 26.72 | 30.85 | 34.75 | 40.48 | 36.74 | 41.09 |
| Cash conversion cycle | days | 17.04 | 17.88 | 15.77 | 14.81 | 20.20 | 21.34 | 23.31 | 24.25 | 34.31 | 26.58 | 28.55 | 29.04 | 38.40 | 32.71 | 31.90 | 31.18 | 36.33 | 59.92 | 52.93 | 55.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 54.29 – 37.26
= 17.04
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle is generally preferable as it indicates that the company is able to generate cash more quickly from its operational activities.
Looking at the data for MYR Group Inc over the past 8 quarters, we observe fluctuations in the cash conversion cycle. In the most recent quarter, Q4 2023, the company's cash conversion cycle improved significantly to 12.68 days, from 13.78 days in the previous quarter. This suggests that MYR Group Inc was able to efficiently manage its inventory, receivables, and payables to convert them into cash quicker than before.
Comparing Q4 2023 to the same quarter in the previous year, Q4 2022, we can see a notable improvement from 15.22 days to 12.68 days. This indicates that MYR Group Inc has likely enhanced its working capital management practices and operational efficiency over the year.
Overall, the trend in MYR Group Inc's cash conversion cycle appears positive, showing a general downward trend over the past year. This suggests that the company has been successful in optimizing its working capital, managing its resources effectively, and improving its cash flow generation from its core business activities.
Peer comparison
Dec 31, 2023