N-Able Inc (NABL)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | 41.69 | 41.88 | 42.71 |
| Number of days of payables | days | 6.95 | 4.91 | 8.09 |
| Cash conversion cycle | days | 34.74 | 36.97 | 34.63 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.69 – 6.95
= 34.74
The cash conversion cycle of N-Able Inc decreased slightly from 36.97 days in 2022 to 34.74 days in 2023. This indicates that the company was able to more efficiently convert its investments in inventory and accounts receivable into cash during the most recent year. The decrease in the cash conversion cycle may suggest improved inventory management, faster collection of receivables, or extended payment terms with suppliers. Overall, a lower cash conversion cycle is favorable as it signifies that the company is generating cash more quickly from its operating activities, which can enhance liquidity and financial performance. N-Able Inc should continue to monitor and manage its cash conversion cycle to ensure optimal cash flow management.
Peer comparison
Dec 31, 2023