Ryder System Inc (R)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 18.44 | 18.16 | 17.95 | 19.69 | 21.52 | 24.21 | 23.83 | 23.22 | 22.89 | 22.41 | 23.05 | 23.69 | 24.62 | 25.17 | 25.93 | 31.79 | 32.69 | 31.82 | 31.98 |
| Days of sales outstanding (DSO) | days | 53.09 | 50.74 | 47.98 | 50.70 | 48.93 | 51.34 | 56.45 | 56.82 | 55.34 | 53.58 | 52.87 | 51.41 | 51.25 | 49.75 | 46.39 | 49.29 | 50.24 | 52.21 | 51.54 | 51.32 |
| Number of days of payables | days | 201.76 | 223.96 | 229.21 | 237.68 | 193.58 | 240.15 | 285.08 | 276.22 | 251.72 | 251.21 | 240.39 | 208.07 | 211.90 | 187.61 | 172.06 | 207.14 | 233.89 | 291.82 | 301.89 | 335.32 |
| Cash conversion cycle | days | -148.66 | -154.79 | -163.07 | -169.03 | -124.97 | -167.29 | -204.42 | -195.57 | -173.16 | -174.74 | -165.10 | -133.61 | -136.96 | -113.24 | -100.49 | -131.92 | -151.87 | -206.92 | -218.53 | -252.03 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 53.09 – 201.76
= -148.66
The cash conversion cycle of Ryder System, Inc. has shown variability over the past eight quarters. The trend indicates that the company has been improving its efficiency in managing its cash conversion cycle as the number of days has been decreasing from 22.79 days in Q4 2022 to 21.04 days in Q4 2023.
The company has been able to convert its investments in inventory into cash within a shorter period, which is a positive sign for operational efficiency. This could be attributed to effective inventory management practices or improved sales processes.
Further, the reduction in the cash conversion cycle suggests that Ryder System, Inc. is managing its accounts payable and accounts receivable effectively, enabling the company to optimize its working capital. By shortening the cycle, the company can free up cash that can be reinvested or used for other strategic purposes.
Overall, the trend of decreasing cash conversion cycle for Ryder System, Inc. reflects positively on its operational efficiency and working capital management strategies. Keeping this trend consistent or further reducing the cycle would be beneficial for the company's financial health and performance.
Peer comparison
Dec 31, 2023