Skechers USA Inc (SKX)
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 | 162.87 | 148.79 | 137.67 | 125.92 | 144.69 | 129.43 | 137.70 | 138.57 | 168.88 | 170.58 | 158.81 | 154.14 | 168.53 | 148.95 | 132.65 | 158.27 | 154.14 | 158.59 | 153.14 | 131.43 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 162.87 | 148.79 | 137.67 | 125.92 | 144.69 | 129.43 | 137.70 | 138.57 | 168.88 | 170.58 | 158.81 | 154.14 | 168.53 | 148.95 | 132.65 | 158.27 | 154.14 | 158.59 | 153.14 | 131.43 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 162.87 + — – —
= 162.87
The cash conversion cycle of Skechers USA Inc has exhibited fluctuations over the analyzed period, ranging from a low of 125.92 days on March 31, 2024, to a high of 170.58 days on September 30, 2022. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates that the company is efficiently managing its working capital.
Skechers USA Inc experienced a decrease in its cash conversion cycle from September 30, 2022, to March 31, 2023, suggesting a more efficient management of its working capital during that period. Subsequently, the company saw a further reduction in the cash conversion cycle by June 30, 2023, and continued to maintain lower levels through December 31, 2024.
It is important for Skechers USA Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain healthy cash flow operations. A consistent focus on improving inventory turnover, accounts receivable collection, and accounts payable management can help the company enhance its working capital efficiency and overall financial performance.
Peer comparison
Dec 31, 2024