UnitedHealth Group Incorporated (UNH)
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 | 10.50 | 15.05 | 13.80 | — | — |
| Days of sales outstanding (DSO) | days | 38.28 | 34.29 | 35.64 | 36.06 | 32.35 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 48.77 | 49.34 | 49.44 | 36.06 | 32.35 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.50 + 38.28 – —
= 48.77
The cash conversion cycle of Unitedhealth Group Inc has shown a fluctuating trend over the past five years, which indicates the company's ability to efficiently manage its working capital. In 2023, the cash conversion cycle increased to 38.28 days from 34.29 days in 2022, suggesting a potential slowdown in the conversion of inventory and receivables into cash. However, the cycle remained relatively consistent compared to 2021 and 2020, where it was 35.64 days and 36.06 days, respectively.
The cash conversion cycle in 2019 was the lowest at 32.35 days, indicating a quick conversion of inventory and receivables into cash. Overall, the company has been able to effectively manage its cash conversion cycle, although the slight increase in 2023 may warrant further analysis to ensure efficient working capital management in the future.
Peer comparison
Dec 31, 2023