Robert Half International Inc (RHI)

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	—	3.53	—	—	40.66	37.20	—	38.79	32.99	—	43.21	49.27	52.35	46.96	—	54.16	—	39.04	35.49	30.22
Days of sales outstanding (DSO)	days	48.58	54.78	54.30	50.90	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
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	48.58	58.31	54.30	50.90	89.63	88.71	51.27	90.29	84.28	55.18	98.85	106.14	107.98	108.18	60.55	112.53	51.01	86.19	78.05	81.16

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 48.58 – —
= 48.58

The cash conversion cycle (CCC) of Robert Half International Inc has shown fluctuations over the past few years. The CCC is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to June 30, 2022, the CCC fluctuated, indicating potential challenges in managing working capital efficiently. However, there was a significant improvement in the CCC from June 30, 2022, to December 31, 2024, with days reducing from 98.85 to 48.58. This improvement suggests that Robert Half International Inc has made progress in managing its working capital more effectively.

Overall, the trend in the cash conversion cycle indicates that the company has experienced periods of inefficiencies followed by improvements in managing its operating cycle and working capital. This could reflect changes in inventory management, accounts receivable, and accounts payable policies over the years. Monitoring and optimizing the cash conversion cycle is essential for ensuring the company's liquidity and operational efficiency.