Sealed Air Corporation (SEE)
Cash conversion cycle
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.38 | 77.06 | 76.44 | 74.62 | 73.11 | 78.95 | 88.88 | 90.65 | 81.73 | 89.08 | 85.55 | 78.41 | 68.75 | 72.84 | 75.28 | 70.51 | 66.12 | 70.92 | 71.88 | 63.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 69.38 | 77.06 | 76.44 | 74.62 | 73.11 | 78.95 | 88.88 | 90.65 | 81.73 | 89.08 | 85.55 | 78.41 | 68.75 | 72.84 | 75.28 | 70.51 | 66.12 | 70.92 | 71.88 | 63.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.38 + — – —
= 69.38
The cash conversion cycle of Sealed Air Corporation has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the cash conversion cycle has ranged between a low of 63.57 days to a high of 90.65 days.
In general, a lower cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, which is favorable as it signifies efficient working capital management. On the other hand, a higher cash conversion cycle may indicate inefficiencies in managing inventory, accounts receivable, and accounts payable, potentially leading to cash flow challenges.
Analyzing the trend of Sealed Air Corporation's cash conversion cycle, it appears that there have been fluctuations in the cycle, with some periods showing increases and others showing decreases. For example, from March 31, 2020, to June 30, 2020, the cycle increased from 63.57 days to 71.88 days, suggesting a possible slowdown in cash conversion efficiency during that period. However, there have also been instances of improvement, such as from June 30, 2023, to September 30, 2023, where the cycle decreased from 88.88 days to 78.95 days, indicating enhanced working capital management.
Overall, monitoring the cash conversion cycle of Sealed Air Corporation is crucial for evaluating the company's operational efficiency and cash flow management. Fluctuations in this metric may signal underlying changes in the company's working capital dynamics, impacting its financial health and liquidity position.
Peer comparison
Dec 31, 2024