ScanSource Inc (SCSC)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.09 | 67.38 | 68.03 | 66.23 | 65.11 | 63.18 | 66.30 | 73.06 | 82.83 | 81.98 | 83.84 | 77.62 | 72.31 | 71.74 | 70.51 | 62.56 | 61.28 | 64.39 | 56.05 | 53.40 |
| Days of sales outstanding (DSO) | days | 76.28 | 69.07 | 66.33 | 65.53 | 76.42 | 62.21 | 67.32 | 67.86 | 80.30 | 65.69 | 75.61 | 75.19 | 75.43 | 68.55 | 67.74 | 66.19 | 65.91 | 63.36 | 63.41 | 57.15 |
| Number of days of payables | days | 83.01 | 76.51 | 71.96 | 76.03 | 74.68 | 66.36 | 62.33 | 68.77 | 75.56 | 71.52 | 82.38 | 81.66 | 84.00 | 85.69 | 81.90 | 76.34 | 82.75 | 73.06 | 78.46 | 68.76 |
| Cash conversion cycle | days | 60.37 | 59.94 | 62.40 | 55.73 | 66.85 | 59.04 | 71.29 | 72.16 | 87.56 | 76.16 | 77.07 | 71.15 | 63.74 | 54.61 | 56.35 | 52.42 | 44.44 | 54.69 | 41.00 | 41.78 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.09 + 76.28 – 83.01
= 60.37
The analysis of ScanSource Inc.'s cash conversion cycle (CCC) over the specified period reveals notable fluctuations and trends. Beginning with a CCC of approximately 41.78 days as of September 30, 2020, the cycle remained relatively stable through the end of 2020, ending at 41.00 days in December 2020. However, a significant increase occurred in early 2021, with the CCC rising to approximately 54.69 days by March 31, 2021. The cycle then experienced a decline to around 44.44 days by June 30, 2021, indicating an improvement in working capital management during that quarter.
Subsequently, there was a consistent upward trend from September 2021 onward, culminating in a peak of approximately 77.07 days as of December 31, 2022. This increase suggests a lengthening of the time it takes for the company to convert its investments in inventory and receivables into cash, possibly due to longer receivables collection periods or increased inventory holding times.
In 2023, a decline in the CCC was observed, descending slightly to approximately 71.29 days as of December 31, 2023. Early 2024 showed a further decrease, with the cycle reaching around 59.04 days in March 2024, indicating improved efficiency in working capital management during this period. The subsequent quarters demonstrated some fluctuation but generally maintained a range between approximately 55 and 67 days.
Overall, the long-term trend illustrates periods of both expansion and contraction of the cash conversion cycle, reflecting changing operational efficiencies, inventory management practices, and receivables collection policies. The recent decline toward the latter part of 2024 suggests efforts towards optimizing working capital and improving cash flow conversion timelines.
Peer comparison
Jun 30, 2025