Newell Brands Inc (NWL)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.10 | 87.87 | 78.67 | 59.27 | 57.38 |
| Days of sales outstanding (DSO) | days | 55.75 | 49.03 | 52.97 | 67.61 | 69.38 |
| Number of days of payables | days | 43.96 | 42.36 | 63.33 | 55.22 | 39.37 |
| Cash conversion cycle | days | 78.89 | 94.54 | 68.31 | 71.66 | 87.39 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.10 + 55.75 – 43.96
= 78.89
The cash conversion cycle of Newell Brands Inc has shown fluctuation over the past five years. The cycle was at its highest in December 2022 at 111.10 days and decreased significantly in December 2023 to 86.97 days. This indicates a shorter time period for the company to convert its investments in inventory into cash from sales. The cycle in December 2021 was relatively low at 67.57 days, suggesting efficient management of cash flow and working capital. However, it increased in December 2020 to 71.74 days before reaching 97.58 days in December 2019.
Overall, the trend in the cash conversion cycle for Newell Brands Inc has been mixed, with fluctuations occurring year over year. It is important for the company to continue monitoring and managing its cash conversion cycle effectively to optimize its working capital efficiency and overall financial performance.
Peer comparison
Dec 31, 2023