Patrick Industries Inc (PATK)
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 | 69.91 | 69.33 | 63.78 | 68.43 | 56.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 69.91 | 69.33 | 63.78 | 68.43 | 56.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.91 + — – —
= 69.91
The cash conversion cycle of Patrick Industries Inc has shown some fluctuations over the past five years.
In December 2020, the cash conversion cycle was 56.31 days. It increased to 68.43 days by December 2021. However, by the end of December 2022, the cycle decreased to 63.78 days. This downward trend was short-lived as it rose to 69.33 days by December 2023 and slightly increased further to 69.91 days by December 2024.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales. A longer cash conversion cycle indicates that the company is taking longer to convert its inventory into sales and subsequently into cash, which can point to potential liquidity issues or inefficiencies in operations. In the case of Patrick Industries Inc, the fluctuation in the cash conversion cycle may reflect changes in inventory management, sales collection practices, or payment schedules with suppliers over the years. Further analysis would be needed to understand the underlying reasons for these fluctuations and their potential impact on the company's financial performance and liquidity position.
Peer comparison
Dec 31, 2024