Sealed Air Corporation (SEE)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.45 | 81.73 | 68.75 | 66.12 | 64.52 |
| Days of sales outstanding (DSO) | days | 38.68 | 47.67 | 48.33 | 50.75 | 51.01 |
| Number of days of payables | days | 72.53 | 81.66 | 90.94 | 83.57 | 83.55 |
| Cash conversion cycle | days | 39.60 | 47.74 | 26.15 | 33.29 | 31.98 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 73.45 + 38.68 – 72.53
= 39.60
The cash conversion cycle of Sealed Air Corp. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 39.60 days, compared to 47.74 days in 2022. This indicates that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023.
In 2021, the cash conversion cycle was at its lowest at 26.15 days but increased in 2022. This suggests that the company was managing its working capital effectively in 2021 but faced challenges in 2022 that led to a longer cash conversion cycle.
Overall, Sealed Air Corp. has generally maintained a relatively stable cash conversion cycle over the past five years, with fluctuations in efficiency in converting its investments into cash. The company should continue monitoring its working capital management to ensure optimal performance in this area.
Peer comparison
Dec 31, 2023