Insight Enterprises Inc (NSIT)
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 | 7.66 | 7.41 | 9.70 | 9.97 | 9.63 | 13.25 | 13.69 | 14.61 | 13.11 | 11.10 | 9.34 | 11.37 | 8.37 | 7.12 | 9.59 | 10.82 | 9.28 | 11.53 | 9.65 | 10.06 |
| Days of sales outstanding (DSO) | days | 142.46 | 119.10 | 138.29 | 111.98 | 115.33 | 106.40 | 127.09 | 112.06 | 114.68 | 110.21 | 129.08 | 112.94 | 118.48 | 99.68 | 118.02 | 110.31 | 119.73 | 118.28 | 119.18 | 89.91 |
| Number of days of payables | days | 103.25 | 80.11 | 99.90 | 79.63 | 75.77 | 66.90 | 79.64 | 73.99 | 83.57 | 72.74 | 91.14 | 79.42 | 81.95 | 73.86 | 92.62 | 70.35 | 74.40 | 74.86 | 90.66 | 62.23 |
| Cash conversion cycle | days | 46.88 | 46.41 | 48.08 | 42.31 | 49.19 | 52.75 | 61.14 | 52.68 | 44.22 | 48.57 | 47.28 | 44.89 | 44.90 | 32.95 | 34.98 | 50.79 | 54.61 | 54.95 | 38.17 | 37.74 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.66 + 142.46 – 103.25
= 46.88
Insight Enterprises Inc.'s cash conversion cycle has fluctuated over the past eight quarters. The company's cash conversion cycle, a measure of how long it takes to convert resources into cash flows, ranged from a low of 29.98 days in Q4 2023 to a high of 51.63 days in Q2 2022. A lower cash conversion cycle indicates better liquidity and efficient management of working capital, while a higher cycle suggests potential challenges or inefficiencies in the conversion process. Insight's trend shows improvement in recent quarters, with a decreasing cycle since Q2 2022. This indicates a positive development in the company's ability to convert its investments in inventory and accounts receivable into cash more quickly, which can help enhance its overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023