Upbound Group Inc. (UPBD)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 1.74 | 1.31 | 1.42 | 1.36 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 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 | 1.74 | 1.31 | 1.42 | 1.36 |
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 some fluctuation over the past few years. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has varied between 0.81 days to 1.83 days between March 2019 and December 2023.
Overall, the trend indicates that the company has been able to manage its working capital efficiently, with the cycle averaging around 1.2 days over this period. A lower cash conversion cycle suggests that the company is able to quickly convert its investments into cash, which can be a positive sign of operational efficiency.
It is notable that the cash conversion cycle reached its peak at 1.83 days in March 2020, indicating a potential temporary delay in the company's cash conversion during that period. However, the cycle improved gradually after that, reaching its lowest point of 0.81 days in March 2022, suggesting improved efficiency in working capital management.
Overall, the fluctuation in the cash conversion cycle of Upbound Group Inc. indicates a need for continued monitoring and management of working capital to ensure optimal liquidity and operational efficiency.
Peer comparison
Dec 31, 2023