N-Able Inc (NABL)

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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	41.40	49.62	51.46	47.43	41.59	41.56	43.76	43.50
Number of days of payables	days	6.95	4.75	7.52	4.30	4.91	3.70	5.85	4.35
Cash conversion cycle	days	34.45	44.87	43.94	43.13	36.68	37.86	37.91	39.15

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.40 – 6.95
= 34.45

The cash conversion cycle of N-Able Inc has been relatively stable over the past few quarters, ranging between 34.45 days to 44.87 days. 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 indicates that the company is able to efficiently manage its working capital and generate cash quickly from its operations. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying off payables.

N-Able Inc's average cash conversion cycle over the periods presented is approximately 39.02 days. This indicates that, on average, it takes the company around 39 days to convert its investments in inventory and other resources into cash flows from sales.

It is important for N-Able Inc to monitor and potentially improve its cash conversion cycle to ensure optimal cash flow management and operational efficiency. By streamlining inventory management, improving collections from customers, and negotiating favorable payment terms with suppliers, N-Able Inc may be able to reduce its cash conversion cycle and free up cash for growth and investment opportunities.