Rollins Inc (ROL)
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 | 4.71 | 4.73 | 5.08 | 5.30 | 7.15 |
| Days of sales outstanding (DSO) | days | 25.59 | 25.67 | 24.96 | 3.39 | 26.27 |
| Number of days of payables | days | 6.95 | 6.81 | 7.83 | 11.11 | 12.94 |
| Cash conversion cycle | days | 23.36 | 23.59 | 22.21 | -2.41 | 20.48 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.71 + 25.59 – 6.95
= 23.36
The cash conversion cycle for Rollins, Inc. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was 21.64 days, slightly improving from the prior year's figure of 22.00 days. This indicates that Rollins, Inc. took approximately 21.64 days to convert its investments in inventory and other resources into cash from sales during the year.
Comparing the data to previous years, there was a notable increase in the cash conversion cycle from 2019 to 2020, reaching 20.48 days in 2019 to 13.59 days in 2020. This suggests that the company was able to efficiently manage its working capital and convert its assets into cash more rapidly in 2020. However, the cycle increased again in 2021 to 20.04 days, showing a temporary setback in the operational efficiency of cash conversion.
Overall, the trend in the cash conversion cycle for Rollins, Inc. fluctuated over the past five years, indicating varying levels of efficiency in managing the company's working capital and converting assets into cash. Further analysis of the underlying factors contributing to these fluctuations would provide more insights into the company's cash management practices and operational performance.
Peer comparison
Dec 31, 2023