Saia Inc (SAIA)

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	—	—	12.52	6.01	6.40
Days of sales outstanding (DSO)	days	41.75	39.62	41.05	44.12	43.52
Number of days of payables	days	14.96	34.86	27.19	33.73	29.21
Cash conversion cycle	days	26.80	4.76	26.39	16.41	20.72

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.75 – 14.96
= 26.80

The cash conversion cycle of Saia Inc has shown fluctuating trends over the past five years. In 2020, the company's cash conversion cycle was 20.72 days, indicating that it takes approximately 20.72 days for Saia Inc to convert its investments in inventory and other resources into cash flows.

By the end of 2021, there was an improvement in efficiency as the cash conversion cycle decreased to 16.41 days, suggesting that the company managed its working capital more effectively. However, in 2022, the cycle increased significantly to 26.39 days, indicating potential challenges in managing its cash flows and working capital efficiently.

The trend shifted dramatically by the end of 2023 when the cash conversion cycle dropped to 4.76 days, implying that Saia Inc became significantly more efficient in converting its investments into cash. However, by 2024, the cycle increased again to 26.80 days, suggesting a potential slowdown in the company's cash conversion efficiency.

Overall, the fluctuation in Saia Inc's cash conversion cycle indicates varying levels of efficiency in managing its working capital and converting investments into cash over the five-year period. Monitoring and managing the cash conversion cycle effectively is crucial for the company to maintain a healthy cash flow position and overall financial performance.