Schneider National Inc (SNDR)

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 6.76 8.71 3.40 2.06 4.02
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 6.76 8.71 3.40 2.06 4.02

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.76 + — – —
= 6.76

The cash conversion cycle of Schneider National Inc has displayed fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 4.02 days, indicating a relatively efficient management of cash, inventory, and accounts receivable. Subsequently, by December 31, 2021, the cash conversion cycle improved further to 2.06 days, reflecting a quicker process of converting investments in inventory and accounts receivable into cash.

However, by December 31, 2022, there was a slight increase in the cash conversion cycle to 3.40 days, suggesting a slowdown in the conversion process. This trend continued into December 31, 2023, where the cash conversion cycle significantly rose to 8.71 days, which may indicate challenges in managing working capital efficiently.

Nevertheless, by December 31, 2024, the cash conversion cycle improved to 6.76 days, albeit still higher compared to previous years, indicating that the company made efforts to optimize its cash, inventory, and accounts receivable management.

Overall, the fluctuations in Schneider National Inc's cash conversion cycle suggest varying degrees of efficiency in managing its working capital over the years, highlighting the importance of monitoring and improving cash conversion processes to enhance overall financial performance.