Newell Brands Inc (NWL)
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 | 101.87 | 117.36 | 112.94 | 111.57 | 97.52 | 107.98 | 114.37 | 129.45 | 121.08 | 133.17 | 126.69 | 113.54 | 99.95 | 107.43 | 105.51 | 105.23 | 94.81 | 99.97 | 102.10 | 102.56 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 101.87 | 117.36 | 112.94 | 111.57 | 97.52 | 107.98 | 114.37 | 129.45 | 121.08 | 133.17 | 126.69 | 113.54 | 99.95 | 107.43 | 105.51 | 105.23 | 94.81 | 99.97 | 102.10 | 102.56 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.87 + — – —
= 101.87
The cash conversion cycle of Newell Brands Inc has fluctuated over the past few years. Starting from March 31, 2020, where it stood at 102.56 days, the company managed to slightly improve its cash conversion cycle by June 30, 2020, with 102.10 days. Thereafter, Newell Brands Inc further reduced its cash conversion cycle to 94.81 days by December 31, 2020, indicating more efficient management of its working capital.
However, the trend reversed in the following quarters with an increase in the cash conversion cycle. By March 31, 2021, it had expanded to 105.23 days and continued to rise to 107.43 days by September 30, 2021. The cash conversion cycle then fluctuated within a relatively higher range for the subsequent quarters, showing signs of operational challenges or changes in the company's management of its cash and inventory conversion processes.
Notably, by the end of December 31, 2024, the cash conversion cycle had decreased to 101.87 days from its peak of 133.17 days on September 30, 2022. This suggests that Newell Brands Inc may have made efforts to streamline its cash conversion cycle during the latter part of the period under review, possibly through improved inventory management, accounts receivable collection, or accounts payable payment strategies.
Overall, the fluctuations in Newell Brands Inc's cash conversion cycle indicate the company's effectiveness in managing its working capital and converting its investments in inventory and accounts receivable into cash. Analyzing the trends in the cash conversion cycle can provide insights into the company's operational efficiency, liquidity, and financial performance over time.
Peer comparison
Dec 31, 2024