Upbound Group Inc. (UPBD)
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 | 1.19 | 1.18 | 1.00 | 1.74 | 1.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 1.19 | 1.18 | 1.00 | 1.74 | 1.74 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.19 + — – —
= 1.19
The cash conversion cycle of Upbound Group Inc. has shown varying trends over the past five years. In 2023, the company's cash conversion cycle stood at 1.19 days, a slight increase from 1.18 days in 2022. This indicates that the company takes approximately 1.19 days to convert its investments in inventory and accounts receivable into cash.
Comparing the most recent data to previous years, it is evident that Upbound Group Inc. has been effective in managing its cash conversion cycle efficiently. In 2021, the company achieved its lowest cash conversion cycle of 1.00 days, demonstrating an improvement in its cash management practices. However, in 2020 and 2019, the cash conversion cycle was higher at 1.74 days, suggesting that the company took longer to convert its assets into cash during those periods.
Overall, Upbound Group Inc. has maintained a relatively low and stable cash conversion cycle in recent years, indicating effective management of working capital and efficient operations in converting its assets into cash. This trend suggests that the company has been successful in optimizing its cash flow and liquidity position.
Peer comparison
Dec 31, 2023