NV5 Global Inc (NVEE)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 44.23 | 51.64 | 47.52 | — | 47.19 | — | — | — | 55.58 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 28.68 | 36.47 | 31.89 | 28.59 | 30.24 | 25.85 | 28.46 | 26.93 | 32.91 | 25.70 | 23.71 | 21.31 | 24.50 | 21.34 | 24.34 | 25.13 | 27.04 | 17.89 | 16.06 | 16.85 |
| Cash conversion cycle | days | 15.54 | 15.17 | 15.63 | -28.59 | 16.95 | -25.85 | -28.46 | -26.93 | 22.67 | -25.70 | -23.71 | -21.31 | -24.50 | -21.34 | -24.34 | -25.13 | -27.04 | -17.89 | -16.06 | -16.85 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 44.23 – 28.68
= 15.54
The cash conversion cycle of NV5 Global Inc fluctuated over the periods provided. A positive cash conversion cycle indicates that the company takes longer to convert its investments in inventory and other resources to cash inflows from sales. Conversely, a negative cash conversion cycle suggests that the company receives cash from customers before having to pay its suppliers.
From the data, it is observed that NV5 Global Inc had positive cash conversion cycles, indicating that, on average, it took around 15 to 23 days to convert its investments in inventory and other resources into cash. The negative values in some periods, such as -28.59 days in March 2023 and -25.85 days in September 2022, suggest that the company received cash from customers more quickly than it paid its suppliers during those periods.
Analyzing the trend, there seems to be inconsistency in the cash conversion cycle over the periods. The company experienced some improvement in managing its cash conversion cycle in December 2023 and September 2023 compared to the negative cycles in the previous quarters.
Overall, further analysis would be needed to determine the specific factors driving these fluctuations in the cash conversion cycle and the effectiveness of NV5 Global Inc in managing its working capital and cash flow operations.
Peer comparison
Dec 31, 2023