Insight Enterprises Inc (NSIT)
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 | 6.45 | 8.98 | 11.00 | 14.99 | 9.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 6.45 | 8.98 | 11.00 | 14.99 | 9.62 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.45 + — – —
= 6.45
Insight Enterprises Inc's cash conversion cycle has shown fluctuations over the past five years. In December 2020, the company's cash conversion cycle was 9.62 days, indicating a relatively efficient conversion of sales into cash. However, by December 2021, the cycle increased to 14.99 days, suggesting a slower conversion of inventory and receivables into cash.
In the subsequent years, Insight Enterprises Inc managed to improve its cash conversion cycle, reaching 11.00 days by December 2022 and further decreasing to 8.98 days by December 2023. This improvement indicates better management of inventory and accounts receivable, leading to a quicker conversion of assets into cash.
By December 2024, the company's cash conversion cycle decreased significantly to 6.45 days, signaling a notable enhancement in the efficiency of Insight Enterprises Inc's cash management. Overall, the trend in the cash conversion cycle suggests that the company has been focusing on optimizing its working capital management over the years, which is reflective of its ability to streamline operations and enhance financial performance.
Peer comparison
Dec 31, 2024