Somnigroup International Inc. (SGI)
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 | 59.31 | 63.05 | 70.54 | 61.08 | 55.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 59.31 | 63.05 | 70.54 | 61.08 | 55.88 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.31 + — – —
= 59.31
The cash conversion cycle of Somnigroup International Inc. has shown variations over the past five years.
As of December 31, 2020, the company's cash conversion cycle was 55.88 days, indicating that it took approximately 55.88 days for the company to convert its investments in inventory into cash receipts from customers.
By December 31, 2021, the cash conversion cycle had increased to 61.08 days, suggesting a slight delay in the company's ability to convert its resources into cash.
In 2022, the cash conversion cycle further extended to 70.54 days, reflecting a longer period for the company to collect cash from its operations.
In the following year, the cycle decreased to 63.05 days by December 31, 2023, but remained above the levels seen in previous years.
As of December 31, 2024, Somnigroup International Inc. managed to improve its cash conversion cycle to 59.31 days, yet it still indicated a moderate time delay in converting its investments into cash receipts.
Overall, the trend in Somnigroup International Inc.'s cash conversion cycle over the past five years shows fluctuations, with some years reflecting longer cycles and others demonstrating improvements in efficiency. This metric is crucial for assessing the company's working capital management and efficiency in generating cash flows from its operations.
Peer comparison
Dec 31, 2024