Schneider National Inc (SNDR)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 12.99 | 13.40 | 17.41 | 16.91 | 12.47 | 8.56 | 7.69 | 6.50 | 5.26 | 5.39 | 5.01 | 4.76 | 4.38 | 4.82 | 7.93 | 8.52 | 7.11 | 6.84 | 7.49 | 7.91 |
| Days of sales outstanding (DSO) | days | 40.26 | 42.09 | 42.32 | 43.94 | 40.04 | 34.86 | 36.75 | 41.97 | 46.48 | 49.49 | 48.24 | 46.40 | 45.93 | 45.69 | 44.78 | 41.95 | 37.90 | 39.27 | 38.04 | 48.97 |
| Number of days of payables | days | 31.09 | 40.05 | 35.64 | 41.77 | 40.52 | 47.50 | 40.12 | 56.52 | 64.23 | 68.97 | 60.60 | 67.58 | 65.88 | 55.73 | 43.41 | 42.96 | 27.87 | 26.76 | 21.63 | 32.89 |
| Cash conversion cycle | days | 22.17 | 15.44 | 24.09 | 19.09 | 11.99 | -4.07 | 4.31 | -8.05 | -12.49 | -14.08 | -7.36 | -16.42 | -15.58 | -5.22 | 9.30 | 7.52 | 17.14 | 19.35 | 23.90 | 23.99 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.99 + 40.26 – 31.09
= 22.17
The cash conversion cycle for Schneider National Inc has shown fluctuations over the past several quarters. The cycle represents the amount of time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter of June 30, 2024, the cash conversion cycle increased to 22.17 days compared to the previous quarter's 15.44 days. This indicates that the company took longer to convert its investments into cash during this period.
Looking back further, the cycle was highest at 24.09 days in December 31, 2023, and lowest at -16.42 days in March 31, 2022, when the company seemed to be able to convert its investments into cash more efficiently than usual.
It is important to note that a negative cash conversion cycle, as observed in some quarters like March 31, 2023, and September 30, 2022, can indicate that the company is able to collect cash from customers before paying its suppliers, which may suggest strong working capital management.
Overall, fluctuations in the cash conversion cycle can be influenced by various factors such as changes in sales patterns, inventory management, and payment terms with suppliers and customers. Schneider National Inc may need to evaluate these factors continually to enhance its working capital efficiency.
Peer comparison
Jun 30, 2024