Upbound Group Inc. (UPBD)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 0.90 | 0.94 | 0.95 | 1.06 | 1.19 | 1.03 | 0.93 | 1.08 | 1.18 | 1.11 | 0.92 | 0.81 | 1.00 | 1.28 | 1.24 | 1.51 | 1.74 | 1.41 | 1.47 | 1.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.90 | 0.94 | 0.95 | 1.06 | 1.19 | 1.03 | 0.93 | 1.08 | 1.18 | 1.11 | 0.92 | 0.81 | 1.00 | 1.28 | 1.24 | 1.51 | 1.74 | 1.41 | 1.47 | 1.83 |
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 demonstrated a general trend of improvement over the past few years. The company's ability to convert its investments in inventory and receivables into cash has become more efficient, as indicated by the decreasing number of days in the cash conversion cycle.
From March 31, 2020, to December 31, 2024, the cash conversion cycle decreased from 1.83 days to 0.90 days, showing a steady improvement in managing its working capital. This is a positive sign as a shorter cash conversion cycle indicates that the company is able to generate cash more quickly from its operational activities.
The decreasing trend in the cash conversion cycle suggests that Upbound Group Inc. has been improving its inventory management, collecting receivables more efficiently, and potentially negotiating better payment terms with its suppliers. Overall, a decreasing cash conversion cycle is a favorable financial indicator as it reflects the company's ability to effectively manage its liquidity and working capital.
Peer comparison
Dec 31, 2024