Ryder System Inc (R)
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 | — | — | — | — | — | 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 |
| Days of sales outstanding (DSO) | days | 53.75 | 54.70 | 55.55 | 55.50 | 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 |
| Number of days of payables | days | 194.10 | 207.54 | 188.17 | 204.80 | 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 |
| Cash conversion cycle | days | -140.35 | -152.84 | -132.61 | -149.30 | -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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 53.75 – 194.10
= -140.35
The cash conversion cycle for Ryder System Inc has shown fluctuating trends over the past few years. The company has consistently maintained negative cash conversion cycle days, indicating efficient management of its working capital.
The company's cash conversion cycle was at its lowest in June 2022, at -204.42 days, which suggests that Ryder System Inc was able to convert its investments in inventory and accounts receivable into cash at a very quick pace during that period. However, there was a slight increase in the cash conversion cycle in the following quarters, indicating a potential slowdown in the efficiency of turning sales into cash.
Overall, despite some fluctuations, Ryder System Inc has managed to consistently operate with a negative cash conversion cycle, reflecting its ability to efficiently manage its cash flow and working capital to support its operations and growth. However, continuous monitoring and management of the cash conversion cycle will be crucial for maintaining financial health and sustainable operations.
Peer comparison
Dec 31, 2024