Newell Brands Inc (NWL)

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	101.51	96.68	121.37	99.95	94.81
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	101.51	96.68	121.37	99.95	94.81

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.51 + — – —
= 101.51

The cash conversion cycle (CCC) of Newell Brands Inc has shown variations over the five-year period from 2020 to 2024. In 2020, the CCC was 94.81 days, indicating that on average it took the company around 94.81 days to convert its investments in inventory and other resources into cash receipts from sales.

However, by the end of 2021, the CCC increased to 99.95 days, which suggests a slight slowdown in the company's ability to convert its working capital into cash. The trend continued in 2022 with a significant increase in the CCC to 121.37 days, indicating that Newell Brands Inc took longer to convert its resources into cash during that period.

In 2023, there was a slight improvement as the CCC decreased to 96.68 days, which could indicate a more efficient management of working capital. By the end of 2024, the CCC increased again to 101.51 days, showing a slight deterioration in the company's cash conversion efficiency compared to the previous year.

Overall, the trend in Newell Brands Inc's cash conversion cycle over the five-year period demonstrates fluctuations in the company's ability to efficiently manage its working capital and convert it into cash. It is essential for the company to monitor and optimize its cash conversion cycle to maintain healthy liquidity and working capital management.