Rollins Inc (ROL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.07 | 4.71 | 4.73 | 5.08 | 5.30 |
| Days of sales outstanding (DSO) | days | 25.46 | 25.59 | 25.67 | 24.96 | 3.39 |
| Number of days of payables | days | 6.37 | 6.95 | 6.81 | 7.83 | 11.11 |
| Cash conversion cycle | days | 24.17 | 23.36 | 23.59 | 22.21 | -2.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.07 + 25.46 – 6.37
= 24.17
Rollins Inc has experienced fluctuations in its cash conversion cycle over the past five years. The company's cash conversion cycle was -2.41 days as of December 31, 2020, indicating that it was able to convert its inventory and receivables into cash quickly. However, in the following years, the cash conversion cycle increased to 22.21 days as of December 31, 2021, and further to 23.59 days as of December 31, 2022. This suggests that Rollins Inc took longer to convert its inventory and receivables into cash during these periods.
Subsequently, the cash conversion cycle slightly decreased to 23.36 days as of December 31, 2023, but then increased again to 24.17 days as of December 31, 2024. Overall, the trend indicates that Rollins Inc has faced challenges in efficiently managing its working capital and converting it into cash in a timely manner in recent years. This could potentially impact the company's liquidity and operational efficiency, warranting further investigation into its inventory management and receivables collection processes.
Peer comparison
Dec 31, 2024