Ryder System Inc (R)
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 | — | — | 19.17 | 23.22 | 23.69 |
| Days of sales outstanding (DSO) | days | 53.76 | 53.09 | 48.93 | 55.34 | 51.25 |
| Number of days of payables | days | 194.10 | 201.76 | 188.52 | 251.72 | 211.90 |
| Cash conversion cycle | days | -140.35 | -148.66 | -120.42 | -173.16 | -136.96 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 53.76 – 194.10
= -140.35
From the data provided, we can observe the cash conversion cycle (CCC) of Ryder System Inc over the past five years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Ryder System Inc has shown a consistent negative cash conversion cycle over the years, indicating an efficient management of working capital. A negative CCC implies that the company is able to collect cash from customers more quickly than it pays its suppliers and other obligations.
In particular, the CCC has fluctuated within a range from approximately -120 to -173 days during the period under review. The company appears to have been successful in managing its inventory, accounts receivable, and accounts payable efficiently.
Overall, the negative CCC trend suggests that Ryder System Inc has been effective in optimizing its working capital management, leading to swift cash generation from its operating cycle. This may signal operational efficiency and liquidity strength within the company.
Peer comparison
Dec 31, 2024