Republic Services Inc (RSG)
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 | 3.49 | 3.36 | 3.62 | 3.90 | 3.79 | 4.12 | 4.00 | 4.15 | 4.30 | 4.71 | 4.96 | 4.22 | 3.91 | 3.84 | 3.72 | 3.66 | 3.54 | 3.52 | 3.45 | 3.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 3.49 | 3.36 | 3.62 | 3.90 | 3.79 | 4.12 | 4.00 | 4.15 | 4.30 | 4.71 | 4.96 | 4.22 | 3.91 | 3.84 | 3.72 | 3.66 | 3.54 | 3.52 | 3.45 | 3.29 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.49 + — – —
= 3.49
The cash conversion cycle of Republic Services Inc has exhibited fluctuations over the years, indicating changes in the efficiency of its cash management.
From March 31, 2020, to December 31, 2022, the cash conversion cycle increased gradually from 3.29 days to 4.30 days, suggesting that the company took longer to convert its investments in raw materials into cash. This could be due to various factors such as inventory management, accounts receivable collection process, and accounts payable payment terms.
However, from March 31, 2024, to December 31, 2024, the cash conversion cycle decreased from 3.90 days to 3.49 days, indicating an improvement in the company's ability to generate cash quickly through its operational activities. This could be a positive sign of better management of inventory, receivables, and payables.
Overall, fluctuations in the cash conversion cycle can provide insights into Republic Services Inc's working capital management and operational efficiency, which are crucial aspects to monitor for the company's financial health and sustainability.
Peer comparison
Dec 31, 2024