Stanley Black & Decker Inc (SWK)
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 | 152.59 | 148.04 | 168.94 | 190.74 | 104.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 152.59 | 148.04 | 168.94 | 190.74 | 104.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 152.59 + — – —
= 152.59
The cash conversion cycle of Stanley Black & Decker Inc has shown some fluctuations over the past five years. The cycle increased from 104.44 days as of December 31, 2020, to 190.74 days by December 31, 2021, indicating a significant increase in the time it takes for the company to convert its investments in inventory and accounts receivable into cash.
Subsequently, there was a slight decrease in the cash conversion cycle to 168.94 days by December 31, 2022. However, by the end of 2023, the cycle decreased further to 148.04 days, showing improvement in the company's efficiency in managing its operating cycle.
As of December 31, 2024, the cash conversion cycle was reported at 152.59 days, slightly up from the previous year but still lower compared to the peak in 2021. This suggests that the company is making efforts to streamline its working capital management processes and enhance its cash conversion efficiency.
Overall, although there have been fluctuations in the cash conversion cycle of Stanley Black & Decker Inc over the past five years, the company seems to be working towards optimizing its operational efficiency and cash flow management.
Peer comparison
Dec 31, 2024