PACCAR Inc (PCAR)
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 | 31.09 | 966.90 | 1,011.14 | 1,005.68 | 970.58 | 1,025.47 | 1,097.06 | 1,084.69 | 961.84 | 1,035.20 | 962.16 | 922.82 | 761.61 | 925.72 | 715.04 | 504.45 | 405.52 | 368.64 | 370.84 | 407.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 31.09 | 966.90 | 1,011.14 | 1,005.68 | 970.58 | 1,025.47 | 1,097.06 | 1,084.69 | 961.84 | 1,035.20 | 962.16 | 922.82 | 761.61 | 925.72 | 715.04 | 504.45 | 405.52 | 368.64 | 370.84 | 407.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.09 + — – —
= 31.09
The cash conversion cycle for PACCAR Inc has exhibited notable fluctuations over the observed periods. It started at 407.73 days on March 31, 2020, decreased to 368.64 days by September 30, 2020, then increased to 504.45 days by March 31, 2021. Subsequently, there was a significant spike to 925.72 days by September 30, 2021, more than doubling the cycle length within a year.
The cycle reduced to 761.61 days by December 31, 2021, yet remained elevated compared to earlier periods. Throughout 2022 and the early part of 2023, the cycle remained above 1,000 days, indicating prolonged periods for converting investments in inventory into cash inflows.
A positive trend began from the end of 2023 with a decline in the cycle to 970.58 days by December 31, 2023, followed by further reductions to 966.90 days by September 30, 2024. Finally, a significant improvement was observed by the end of December 31, 2024, with a remarkably low cycle of 31.09 days. This steep decline might suggest enhanced efficiency in managing inventory, accounts receivable, and accounts payable.
Overall, the cash conversion cycle for PACCAR Inc reflected periods of prolonged conversion durations, followed by improvements signaling potentially more effective working capital management practices towards the end of the monitoring period.
Peer comparison
Dec 31, 2024