Somnigroup International Inc. (SGI)
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 | 59.31 | 66.49 | 68.16 | 64.62 | 63.05 | 62.46 | 67.17 | 72.25 | 70.54 | 74.66 | 76.15 | 73.07 | 61.08 | 54.27 | 49.11 | 53.92 | 55.88 | 51.54 | 52.19 | 54.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | 35.12 | 34.45 | 31.34 | 34.99 | 34.01 | 30.36 | 31.05 | 40.24 | 38.35 | 37.21 | 38.09 | 46.09 | 39.23 | 42.03 |
| Number of days of payables | days | — | — | — | — | — | — | 46.02 | 46.93 | 45.73 | 54.87 | 53.21 | 58.11 | 56.88 | 65.34 | 52.52 | 47.12 | 58.03 | 61.89 | 49.83 | 53.21 |
| Cash conversion cycle | days | 59.31 | 66.49 | 68.16 | 64.62 | 63.05 | 62.46 | 56.27 | 59.77 | 56.16 | 54.78 | 56.95 | 45.32 | 35.25 | 29.17 | 34.94 | 44.01 | 35.94 | 35.74 | 41.59 | 43.65 |
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., a measure of how efficiently the company manages its working capital, has shown some fluctuations over the reviewed periods.
The cycle started at 43.65 days on March 31, 2020, decreased to 29.17 days by September 30, 2021, showing the company was able to manage its cash, inventory, and receivables more effectively during this period. However, from there, the cycle increased again, hitting a peak of 68.16 days on June 30, 2024, before slightly decreasing to 59.31 days by December 31, 2024.
Overall, the trend indicates some inefficiencies in managing the cash conversion cycle during certain periods, which may warrant further investigation into the company's working capital management strategies. Investors and stakeholders should monitor these trends closely to ensure that the company maintains a healthy and efficient cash conversion cycle.
Peer comparison
Dec 31, 2024