Smurfit WestRock plc (SW)

Cash conversion cycle

Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Jun 30, 2023 Dec 31, 2022
Days of inventory on hand (DOH) days
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 0.00 0.00

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

Based on the provided data, it appears that Smurfit WestRock plc has an unusual pattern of reporting zero days for the cash conversion cycle for the periods listed, indicating that its operating cycle is extremely efficient. A zero-day cash conversion cycle suggests that the company is able to quickly convert its inventory into cash without holding excessive levels of working capital, and it is efficiently managing its accounts receivable and accounts payable.

This strong performance in managing the cash conversion cycle can be indicative of effective inventory management practices, prompt collection of accounts receivable, and strategic payment of accounts payable. The company's ability to operate with such a short cash conversion cycle may result in lower financing costs, improved cash flows, and increased efficiency in its working capital management.

Overall, the consistently reported zero days for the cash conversion cycle suggests that Smurfit WestRock plc is proficient in managing its working capital effectively, leading to optimized liquidity and potentially contributing to its overall financial strength and performance.


Peer comparison

Jun 30, 2024