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.