ODP Corp (ODP)
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 | 50.69 | 48.99 | 49.12 | 45.35 | 46.04 | 45.20 | 47.19 | 44.02 | 45.49 | 49.27 | 53.68 | 46.53 | 45.24 | 43.16 | 47.29 | 46.36 | 44.79 | 47.26 | 46.49 | 41.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 50.69 | 48.99 | 49.12 | 45.35 | 46.04 | 45.20 | 47.19 | 44.02 | 45.49 | 49.27 | 53.68 | 46.53 | 45.24 | 43.16 | 47.29 | 46.36 | 44.79 | 47.26 | 46.49 | 41.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.69 + — – —
= 50.69
The cash conversion cycle of ODP Corp has shown fluctuations over the analyzed period. The company's cash conversion cycle measures the time it takes for ODP Corp to convert its resources invested in inventory and accounts receivable back into cash.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 41.60 days to a high of 53.68 days. The cycle experienced some volatility but generally remained within a reasonable range, indicating that ODP Corp has been managing its working capital effectively.
The trend in the cash conversion cycle shows a slight increase in the latter part of the analyzed period, with some peaks and troughs along the way. A higher cash conversion cycle implies that ODP Corp takes longer to collect cash from its sales, manage inventory, and pay suppliers.
By closely monitoring and analyzing the cash conversion cycle, ODP Corp can optimize its working capital management to ensure efficient operations and cash flow. This metric is crucial in evaluating the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024