Sealed Air Corporation (SEE)
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 | 73.45 | 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 | 64.52 | 70.13 | 67.74 | 67.69 |
| Days of sales outstanding (DSO) | days | 38.68 | 40.53 | 39.45 | 39.85 | 47.67 | 47.71 | 46.33 | 49.79 | 48.33 | 52.37 | 52.52 | 50.42 | 50.75 | 49.84 | 45.25 | 43.76 | 51.01 | 43.91 | 48.74 | 45.94 |
| Number of days of payables | days | 72.53 | 70.61 | 75.11 | 77.89 | 81.66 | 84.47 | 90.60 | 89.04 | 90.94 | 90.26 | 90.73 | 87.99 | 83.57 | 80.80 | 81.55 | 80.03 | 83.55 | 80.84 | 85.57 | 87.15 |
| Cash conversion cycle | days | 39.60 | 48.86 | 53.23 | 52.62 | 47.74 | 52.33 | 41.27 | 39.16 | 26.15 | 34.95 | 37.07 | 32.94 | 33.29 | 39.96 | 35.58 | 27.30 | 31.98 | 33.20 | 30.91 | 26.49 |
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 some fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 39.60 days from the previous quarter, indicating a more efficient management of cash flow. However, compared to Q1 2022, where the cycle was 39.16 days, this current decrease is relatively minor.
Looking at the trend over the quarters, there was a steady increase from Q1 2022 to Q3 2023, reaching a peak of 53.23 days in Q2 2023. This suggests that the company may have faced challenges in efficiently converting its investments in inventory and accounts receivables into cash during this period.
The decrease in the cash conversion cycle in Q4 2023 might signify improved inventory management, faster collection of receivables, or better payment terms with suppliers. It is essential for Sealed Air Corp. to monitor and manage its cash conversion cycle effectively as it directly impacts the company's liquidity and working capital efficiency.
Peer comparison
Dec 31, 2023