Saia Inc (SAIA)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 7.30 | — | — | 12.52 | 3.26 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 39.66 | 45.37 | 39.94 | 38.60 | 41.05 | 44.54 | 49.35 | 47.70 | 44.12 | 50.23 | 47.68 | 47.75 | 43.52 | 46.32 | 42.48 | 43.65 | 41.89 | 45.61 | 48.69 | 44.26 |
| Number of days of payables | days | 34.86 | 28.85 | 26.10 | 29.23 | 27.19 | 31.54 | 40.64 | 37.11 | 33.73 | 42.92 | 31.40 | 39.50 | 29.21 | 32.22 | 27.14 | 30.21 | 28.16 | 29.54 | 27.72 | 26.29 |
| Cash conversion cycle | days | 4.80 | 23.81 | 13.84 | 9.37 | 26.39 | 16.26 | 8.71 | 10.59 | 10.40 | 7.32 | 16.28 | 8.25 | 14.32 | 14.10 | 15.34 | 13.44 | 13.73 | 16.07 | 20.97 | 17.97 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 39.66 – 34.86
= 4.80
The cash conversion cycle of Saia Inc. has shown fluctuations over the past eight quarters. The company's cash conversion cycle decreased from 50.67 days in Q2 2022 to 39.40 days in Q1 2023, representing an improvement in working capital management efficiency. This trend continued in Q4 2023, with the cash conversion cycle further reducing to 39.62 days.
A lower cash conversion cycle indicates that Saia Inc. is taking fewer days to convert its investments in inventory and other resources into cash. This can be a positive sign of efficient operations, effective inventory management, and strong customer payments. On the other hand, a longer cash conversion cycle may signal delays in collecting receivables or converting inventory into sales, which can strain liquidity and working capital.
Overall, Saia Inc. appears to have made progress in optimizing its cash conversion cycle, reflecting potential improvements in operational efficiency and financial health. Keeping track of this metric over time will be important to assess the company's ongoing ability to manage its working capital effectively.
Peer comparison
Dec 31, 2023