Thryv Holdings Inc (THRY)
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 | 37.17 | 21.70 | 20.05 | 26.05 | 21.48 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 37.17 | 21.70 | 20.05 | 26.05 | 21.48 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.17 + — – —
= 37.17
The cash conversion cycle of Thryv Holdings Inc has shown a decreasing trend over the past four years, indicating an improvement in the efficiency of its working capital management. As of December 31, 2023, the company's cash conversion cycle stood at 71.88 days, down from 73.52 days in the previous year. This suggests that Thryv Holdings has been able to reduce the time it takes to convert its investments in inventory and accounts receivable into cash.
Comparing to 2021 and 2020, where the cash conversion cycle was 88.60 days and 91.72 days respectively, the company has made significant progress in managing its working capital more effectively. A shorter cash conversion cycle implies that Thryv Holdings has been able to streamline its operations, improve inventory turnover, and accelerate the collection of accounts receivable, which can help enhance its liquidity position and overall financial performance.
In conclusion, the decreasing trend in Thryv Holdings Inc's cash conversion cycle reflects positive developments in the company's working capital management practices, indicating better efficiency in converting its investments into cash.