National HealthCare Corporation (NHC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.75 | 3.48 | 3.48 | 4.48 | 4.69 |
| Days of sales outstanding (DSO) | days | 37.92 | 34.87 | 33.71 | 32.81 | 32.16 |
| Number of days of payables | days | 16.96 | 17.67 | 16.49 | 20.94 | 20.07 |
| Cash conversion cycle | days | 24.72 | 20.67 | 20.71 | 16.36 | 16.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.75 + 37.92 – 16.96
= 24.72
The cash conversion cycle of National HealthCare Corporation has shown a slight increase over the years. As of December 31, 2020, the company's cash conversion cycle stood at 16.78 days, and it decreased to 16.36 days by December 31, 2021. However, in the subsequent years, the cycle lengthened, reaching 20.71 days by December 31, 2022, and 20.67 days by December 31, 2023. Finally, by December 31, 2024, the cash conversion cycle extended further to 24.72 days. This trend indicates that the company may be taking longer to convert its investments in inventory and accounts receivable into cash. Additional analysis of the underlying factors influencing this trend would provide more insights into the company's working capital management efficiency.
Peer comparison
Dec 31, 2024