Simpson Manufacturing Company Inc (SSD)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 120.87 | 127.82 | 140.47 | 106.54 | 99.87 |
| Days of sales outstanding (DSO) | days | 46.95 | 46.62 | 53.89 | 47.64 | 44.65 |
| Number of days of payables | days | 23.56 | 22.46 | 18.11 | 18.13 | 13.22 |
| Cash conversion cycle | days | 144.26 | 151.98 | 176.25 | 136.05 | 131.30 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 120.87 + 46.95 – 23.56
= 144.26
The cash conversion cycle of Simpson Manufacturing Co., Inc. has shown some fluctuation over the past five years. In 2023, the company's cash conversion cycle decreased to 185.34 days from 189.02 days in 2022. This indicates that the company was able to manage its cash more efficiently in 2023 compared to the previous year.
In 2021, the cash conversion cycle increased significantly to 226.04 days, which suggests that the company took longer to convert its investments in inventory and accounts receivable into cash. However, in 2020, there was a decrease in the cash conversion cycle to 171.81 days, indicating an improvement in the company's working capital management.
The cash conversion cycle was relatively stable in 2019 at 168.55 days. Overall, the trend in the cash conversion cycle shows some variability, but the company seems to have made efforts to optimize its working capital management in recent years.
Peer comparison
Dec 31, 2023