Stericycle Inc (SRCL)
Cash conversion cycle
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 5.49 | 4.58 | 4.74 | 4.50 | 5.25 | 4.65 | 5.68 | 6.15 | 8.03 | 4.56 | 6.95 | 8.48 | 11.09 | 16.64 | 88.57 | 7.44 | 11.39 | 12.70 | 12.87 |
| Days of sales outstanding (DSO) | days | 78.02 | 64.68 | 56.12 | 56.03 | 55.67 | 62.60 | 64.22 | 63.15 | 57.98 | 58.04 | 57.16 | 56.85 | 54.45 | 53.45 | 46.87 | 48.32 | 60.93 | 61.53 | 66.66 | 64.11 |
| Number of days of payables | days | 29.33 | 27.87 | 28.31 | 26.69 | 28.93 | 26.72 | 27.18 | 27.93 | 29.54 | 28.98 | 25.07 | 28.06 | 24.40 | 25.19 | 20.75 | 25.66 | 26.97 | 24.02 | 29.79 | 31.17 |
| Cash conversion cycle | days | 48.69 | 42.30 | 32.39 | 34.07 | 31.24 | 41.13 | 41.69 | 40.90 | 34.59 | 37.08 | 36.65 | 35.74 | 38.53 | 39.35 | 42.76 | 111.22 | 41.40 | 48.90 | 49.57 | 45.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 78.02 – 29.33
= 48.69
The cash conversion cycle of Stericycle Inc. fluctuated over the past eight quarters, ranging from a low of 9.53 days in Q4 2022 to a high of 28.95 days in Q4 2023. The trend indicates a general increase in the cash conversion cycle over the past year, with Q4 2023 showing the longest time period required to convert its products or services into cash.
The company's ability to manage its working capital efficiently has varied, as seen in the changing cash conversion cycle figures. A longer cash conversion cycle can indicate inefficiencies in managing accounts receivable, inventory, or accounts payable. On the other hand, a shorter cycle suggests effective management and faster cash generation.
Analyzing the quarterly variations in the cash conversion cycle can provide insights into the company's operational efficiency, liquidity, and overall financial health. Monitoring this metric over time can help assess the effectiveness of Stericycle Inc.'s working capital management strategies and identify areas for improvement.
Peer comparison
Dec 31, 2023