Smurfit WestRock plc (SW)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 50.52 | 51.76 | 54.95 | 50.59 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 50.52 | 51.76 | 54.95 | 50.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Smurfit WestRock plc has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 50.59 days, indicating the average number of days it takes for Smurfit WestRock to convert its investments in raw materials into cash from sales.
There was a slight increase in the cash conversion cycle to 54.95 days by December 31, 2021, suggesting a longer time period for the company to convert its resources into cash. However, by December 31, 2022, the cycle decreased to 51.76 days, showing some improvement in the efficiency of Smurfit WestRock's working capital management.
In the following year, the cash conversion cycle further improved to 50.52 days as of December 31, 2023, indicating that the company was able to more efficiently manage its operating cycle. Notably, by December 31, 2024, the data indicates a cash conversion cycle of 0.00 days, which may be an anomaly or data reporting error that needs further investigation to understand the significant drop to zero.
Overall, fluctuations in the cash conversion cycle of Smurfit WestRock plc over the analyzed period suggest varying efficiencies in managing its working capital and operational processes, with the need for continued monitoring and potential strategic adjustments to optimize cash flow and liquidity.
Peer comparison
Dec 31, 2024