United Parcel Service Inc (UPS)
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 | 4.04 | — | — | 4.42 | 4.47 | — | — | — | 3.72 | — | — | — | 3.17 | — | — | 5.18 | 2.95 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 4.04 | 0.00 | 0.00 | 4.42 | 4.47 | 0.00 | 0.00 | 0.00 | 3.72 | 0.00 | 0.00 | 0.00 | 3.17 | 0.00 | 0.00 | 5.18 | 2.95 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.04 + — – —
= 4.04
The cash conversion cycle for United Parcel Service Inc experienced fluctuations over the years based on the provided data. In the latest period of December 31, 2024, the company's cash conversion cycle stood at 4.04 days, indicating that it takes approximately this many days for UPS to convert its resources invested in inventory back into cash. This suggests that UPS efficiently manages its operating cycle, including inventory turnover, accounts receivable collection, and accounts payable payment, contributing to a relatively short cash conversion cycle. Additionally, the trend of lower or zero days in various periods illustrates UPS's ability to effectively manage its working capital and generate cash flow, which is crucial for sustaining operations and supporting growth initiatives.
See also:
United Parcel Service Inc Cash Conversion Cycle (Quarterly Data)