Robert Half International Inc (RHI)

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	40.66	37.20	—	38.79	32.99	—	43.21	49.27	52.35	46.96	51.42	54.16	50.46	39.04	35.49	30.22	32.31	25.06	24.75	23.93
Days of sales outstanding (DSO)	days	48.97	51.51	51.27	51.50	51.29	55.18	55.64	56.87	55.62	61.22	60.55	58.36	51.01	47.15	42.56	50.94	50.01	51.69	51.79	51.32
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	89.63	88.71	51.27	90.29	84.28	55.18	98.85	106.14	107.98	108.18	111.97	112.53	101.47	86.19	78.05	81.16	82.32	76.75	76.53	75.26

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 exhibited a relatively stable trend over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle improved to 49.15 days from 51.68 days in the previous quarter, indicating a more efficient management of working capital. This improvement could be attributed to better inventory management or quicker collection of receivables.

Comparing to the same quarter in the previous year, the company has generally shown progress in shortening its cash conversion cycle. From Q4 2022 to Q4 2023, Robert Half Inc has managed to reduce the cycle by 2.20 days. This implies a more streamlined operation, potentially leading to improved liquidity and profitability.

It is noteworthy that the company's cash conversion cycle peaked in Q2 2022 at 56.87 days and has since shown a gradual decline, suggesting ongoing efforts to enhance operational efficiency and cash flow management.

Overall, Robert Half Inc's consistent focus on optimizing its cash conversion cycle is a positive sign of effective working capital management and potential for sustained financial health and growth.