Ryder System Inc (R)
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 | — | 19.17 | 23.22 | 23.69 | 31.79 |
| Days of sales outstanding (DSO) | days | 53.09 | 48.93 | 55.34 | 51.25 | 50.24 |
| Number of days of payables | days | 201.76 | 188.52 | 251.72 | 211.90 | 233.89 |
| Cash conversion cycle | days | -148.66 | -120.42 | -173.16 | -136.96 | -151.87 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 53.09 – 201.76
= -148.66
Based on the data provided, the cash conversion cycle of Ryder System, Inc. has shown a generally improving trend over the past five years. The company's cash conversion cycle decreased from 25.41 days in 2019 to 21.04 days in 2023. This indicates that Ryder System has become more efficient in managing its cash flow and working capital.
A lower cash conversion cycle suggests that Ryder is taking less time to convert its investments in inventory and other resources into cash from sales. This can be a positive sign, indicating effective inventory management and faster collection of receivables.
Overall, the decreasing trend in the cash conversion cycle for Ryder System, Inc. demonstrates improved operational efficiency and liquidity management over the years, which can positively impact the company's financial health and sustainability.
Peer comparison
Dec 31, 2023