Schneider National Inc (SNDR)
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 | 6.67 | 6.07 | 6.61 | 6.73 | 8.65 | 8.26 | 5.89 | 3.47 | 3.40 | 2.78 | 2.20 | 2.24 | 2.06 | 1.98 | 1.85 | 2.24 | 4.02 | 5.27 | 5.17 | 5.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 6.67 | 6.07 | 6.61 | 6.73 | 8.65 | 8.26 | 5.89 | 3.47 | 3.40 | 2.78 | 2.20 | 2.24 | 2.06 | 1.98 | 1.85 | 2.24 | 4.02 | 5.27 | 5.17 | 5.37 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.67 + — – —
= 6.67
Schneider National Inc's cash conversion cycle has fluctuated over the specified period. It decreased from 5.37 days as of March 31, 2020, to 1.85 days as of June 30, 2021, indicating an improvement in the company's ability to convert its resources into cash. However, the cash conversion cycle started to increase again, reaching 8.65 days as of December 31, 2023, before declining slightly to 6.67 days by December 31, 2024.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash receipts from customers. A shorter cash conversion cycle implies that the company is efficiently managing its working capital, which can lead to improved cash flows and profitability. On the other hand, a longer cash conversion cycle may indicate inefficiencies in managing inventory, receivables, and payables.
It is important for Schneider National Inc to closely monitor its cash conversion cycle to ensure optimal utilization of its resources and maintain healthy liquidity levels. Analyzing trends in the cash conversion cycle can provide valuable insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024