Simpson Manufacturing Company Inc (SSD)
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 | 120.95 | 112.54 | 117.01 | 128.25 | 127.87 | 130.10 | 142.71 | 131.14 | 140.55 | 129.17 | 105.94 | 106.54 | 106.51 | 100.04 | 104.73 | 101.10 | 100.11 | 96.28 | 108.39 | 111.53 |
| Days of sales outstanding (DSO) | days | 46.95 | 58.87 | 65.83 | 57.76 | 46.62 | 59.43 | 72.17 | 68.23 | 53.82 | 59.73 | 64.56 | 62.41 | 47.64 | 66.52 | 71.84 | 52.75 | 44.54 | 58.76 | 63.56 | 57.41 |
| Number of days of payables | days | 23.58 | 21.25 | 21.87 | 21.20 | 22.47 | 23.77 | 29.86 | 22.59 | 18.12 | 20.91 | 20.58 | 23.79 | 18.12 | 16.26 | 19.40 | 17.59 | 13.25 | 16.21 | 15.98 | 14.55 |
| Cash conversion cycle | days | 144.32 | 150.16 | 160.98 | 164.81 | 152.02 | 165.76 | 185.02 | 176.78 | 176.26 | 167.99 | 149.92 | 145.16 | 136.03 | 150.29 | 157.18 | 136.25 | 131.40 | 138.83 | 155.97 | 154.39 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 120.95 + 46.95 – 23.58
= 144.32
The cash conversion cycle of Simpson Manufacturing Co., Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 185.34 days, which decreased compared to the previous quarter. Despite this improvement, the cycle remains relatively stable, indicating efficient management of the company's working capital.
Overall, the cash conversion cycle has been historically high, with the longest cycle observed in Q2 2022 at 226.30 days. However, the company has managed to reduce the cycle over the quarters, with Q4 2023 showing a decrease compared to the same quarter in the previous year.
Although the company's cash conversion cycle has shown some variability, it is essential for Simpson Manufacturing Co., Inc. to continue monitoring and managing this metric effectively to optimize its working capital management and operational efficiency.
Peer comparison
Dec 31, 2023