Robert Half International Inc (RHI)
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 | 40.66 | 32.99 | 38.88 | — | — |
| Days of sales outstanding (DSO) | days | 48.97 | 51.29 | 55.62 | 51.01 | 50.00 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 89.63 | 84.28 | 94.50 | 51.01 | 50.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.66 + 48.97 – —
= 89.63
The cash conversion cycle of Robert Half Inc has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle was 49.15 days, indicating that it took approximately 49 days to convert its investments in inventory and other resources into cash from sales. This represents an improvement compared to 2022 and 2021 when the cash conversion cycles were 51.35 days and 55.62 days, respectively.
However, when comparing the 2023 figure with 2020 and 2019, we see a slight increase in the cash conversion cycle from 51.02 days to 50.04 days. This could signify a longer time taken to convert resources into cash during those years.
Overall, Robert Half Inc has effectively managed its cash conversion cycle in 2023, achieving a lower number of days compared to the previous years. This implies efficient management of working capital and a quicker conversion of resources into cash flow, which may be indicative of better liquidity and operational efficiency.
Peer comparison
Dec 31, 2023