Sherwin-Williams Co (SHW)
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 | 70.16 | 69.17 | 74.76 | 61.69 | 68.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 70.16 | 69.17 | 74.76 | 61.69 | 68.03 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.16 + — – —
= 70.16
The cash conversion cycle of Sherwin-Williams Co has fluctuated over the past five years. In 2020, the company had a cash conversion cycle of 68.03 days, which decreased to 61.69 days in 2021, indicating an improvement in efficiency. However, the cycle then increased to 74.76 days in 2022, before declining slightly to 69.17 days in 2023 and 70.16 days in 2024.
Overall, the trend suggests that Sherwin-Williams Co has been managing its cash conversion cycle relatively well, although there was a notable increase in 2022. A lower cash conversion cycle indicates that the company is able to convert its investments in inventory and receivables into cash more quickly, which can positively impact liquidity and working capital management. It would be beneficial for the company to continue monitoring and controlling its cash conversion cycle to optimize its cash flow efficiency.
Peer comparison
Dec 31, 2024