Insight Enterprises Inc (NSIT)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.45 | 7.76 | 7.27 | 8.23 | 8.98 | 8.63 | 11.23 | 11.46 | 11.00 | 15.10 | 15.57 | 16.66 | 14.99 | 12.68 | 10.72 | 13.05 | 9.62 | 8.20 | 11.01 | 12.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 6.45 | 7.76 | 7.27 | 8.23 | 8.98 | 8.63 | 11.23 | 11.46 | 11.00 | 15.10 | 15.57 | 16.66 | 14.99 | 12.68 | 10.72 | 13.05 | 9.62 | 8.20 | 11.01 | 12.37 |
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 fluctuated over the periods analyzed. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the trend of the cash conversion cycle varied. It decreased from 12.37 days on March 31, 2020, to 6.45 days on December 31, 2024.
A lower cash conversion cycle indicates that the company is more efficient in turning its resources into cash, which is generally positive as it implies that the company is managing its working capital effectively.
Insight Enterprises Inc should continue to monitor its cash conversion cycle to ensure that it remains at an optimal level, balancing the need to maintain sufficient inventory levels with the goal of quickly converting inventory into sales and ultimately cash.
Peer comparison
Dec 31, 2024