Tractor Supply Company (TSCO)
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 | 109.28 | 103.54 | 107.12 | 96.90 | 94.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 109.28 | 103.54 | 107.12 | 96.90 | 94.90 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 109.28 + — – —
= 109.28
Tractor Supply Company's cash conversion cycle has fluctuated over the years based on the provided data. From December 31, 2020, to December 31, 2024, the cash conversion cycle increased from 94.90 days to 109.28 days. This indicates that the company's ability to convert its investments in inventory into cash has lengthened over this period. A longer cash conversion cycle may suggest inefficiencies in managing inventory, paying suppliers, and collecting receivables, leading to a longer period of tying up cash in the operating cycle. Tractor Supply Company may want to focus on optimizing its inventory management, payable terms, and collection policies to potentially improve its cash conversion cycle and overall working capital efficiency.
Peer comparison
Dec 31, 2024