Sealed Air Corporation (SEE)
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 | 69.97 | 73.45 | 81.73 | 68.75 | 66.12 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 69.97 | 73.45 | 81.73 | 68.75 | 66.12 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.97 + — – —
= 69.97
The cash conversion cycle for Sealed Air Corporation has shown varying trends over the past five years. In December 2020, the cash conversion cycle was 66.12 days, which increased to 68.75 days by December 2021. Subsequently, there was a notable rise to 81.73 days by December 2022, indicating a potential delay in converting its investments in raw materials and production into cash receipts from customers. However, the company managed to improve its cash conversion cycle slightly by reducing it to 73.45 days by December 2023 and further to 69.97 days by December 2024.
The fluctuations in the cash conversion cycle suggest potential challenges in managing the company's working capital efficiency and liquidity. Efforts to streamline operations, optimize inventory management, and accelerate cash collections may be crucial in improving the company's financial performance and cash flow position in the future.
Peer comparison
Dec 31, 2024