Upbound Group Inc. (UPBD)
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 | 0.90 | 1.19 | 1.18 | 1.00 | 1.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.90 | 1.19 | 1.18 | 1.00 | 1.74 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 0.90 + — – —
= 0.90
The cash conversion cycle of Upbound Group Inc. has displayed a decreasing trend over the years, indicating an improvement in the company's efficiency in managing its cash flows. From 1.74 days in December 31, 2020, the cycle decreased to 0.90 days by December 31, 2024. This suggests that the company has been able to convert its investments in inventory into cash more rapidly over the period.
A lower cash conversion cycle typically indicates that the company is efficient in managing its working capital, including inventory, accounts receivable, and accounts payable. It signifies that Upbound Group Inc. is optimizing its operations to generate cash flows more quickly, which can lead to improved liquidity and financial performance.
Overall, the continuous decline in the cash conversion cycle reflects positively on Upbound Group Inc.'s financial management and operational efficiency, signaling potential benefits for the company's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2024