Schneider National Inc (SNDR)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	17.41	7.69	5.01	9.04	7.46
Days of sales outstanding (DSO)	days	42.32	36.75	48.24	44.78	38.04
Number of days of payables	days	35.64	40.12	60.60	49.50	21.56
Cash conversion cycle	days	24.09	4.31	-7.36	4.32	23.94

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.41 + 42.32 – 35.64
= 24.09

The cash conversion cycle of Schneider National Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 24.09 days, indicating that on average, it takes about 24.09 days for the company to convert its investments in inventory and other resources into cash flows from sales.

Comparing this to the previous years, there has been a notable increase from the negative cycle in 2021 to the positive cycle in 2023. This increase may suggest a lengthening in the time it takes for Schneider National Inc to convert its operating assets into cash.

In 2022, the company managed to operate with a much lower cash conversion cycle of 4.31 days, indicating a tighter management of working capital and a quicker conversion cycle. Additionally, the similar low cycle in 2020 at 4.32 days suggests effective management of cash flows and working capital efficiency during that period.

Overall, the company should focus on maintaining or improving its cash conversion cycle to ensure efficient management of its working capital and optimize its cash flow operations.