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.